10 Things Every First-Time Home Buyer MUST Know Before Making an Offer
Buying your first home is one of the most exciting — and nerve-wracking — things you'll ever do. The market in 2026 is competitive, fast-moving, and full of traps that can cost you thousands if you don't know what you're doing. After helping dozens of first-time buyers find (and win) their dream homes, I've distilled everything into the 10 things I wish every buyer walked in knowing.
1. Get Pre-Approved — Not Just Pre-Qualified
These two words sound the same but mean very different things. A pre-qualification is a quick estimate based on self-reported info. A pre-approval is a verified commitment from a lender — and in today's market, sellers won't take you seriously without one. Get pre-approved before you fall in love with a single listing.
2. Your Budget Is Not Your Purchase Price
The number your lender approves you for is the ceiling, not the target. Factor in closing costs (2–5% of the loan), moving expenses, home inspection fees, potential repairs, and the first few months of ownership before your finances settle. A smart buyer aims 10–15% under their max approval.
“The best time to buy a home was yesterday. The second best time is with an agent who fights for you.”
3. Location Beats Square Footage. Every Time.
You can renovate a kitchen. You cannot move a house. When evaluating properties, prioritize school districts, commute times, neighborhood trajectory, and proximity to things you actually use. A smaller home in the right area will always outperform a larger home in the wrong one — for your lifestyle and for resale.
4. Never Skip the Home Inspection
I've seen buyers waive inspections to win bidding wars and then discover $30,000 in foundation issues. A $400–$600 inspection is the cheapest insurance you'll ever buy. If the market demands you compete without contingencies, consider a pre-offer inspection (ask me how).
Quick Stat: According to the National Association of Realtors, 87% of first-time buyers who worked with an agent said their agent helped them understand the process. That guidance is free to you — agents are paid by the seller.
5. Understand What's Negotiable (Hint: Almost Everything)
The listing price is a starting point, not a verdict. Closing costs, repair credits, appliances, move-in dates, and contingencies are all negotiable. A skilled buyer's agent knows which levers to pull and when — especially in a market where sellers are motivated.
6. First-Time Buyer Programs Are Real (and Underused)
Many buyers leave thousands of dollars on the table because they don't know about FHA loans (3.5% down), USDA loans (0% down in eligible areas), VA loans, and state-specific down payment assistance programs. Ask your lender and your agent about every program you qualify for before you decide on financing.
7. Think About Resale From Day One
Even if this is your "forever home," life happens. Buy with the exit in mind. Homes on busy roads, near train tracks, or with unusual layouts are harder to sell. Homes with 3+ bedrooms, good bones, and proximity to good schools hold value and sell faster.
8. Don't Make Big Financial Moves During Escrow
This one trips people up constantly. Do not buy a car, open new credit, quit your job, or make large deposits from the moment you apply for a mortgage until after closing. Lenders re-check your finances right before closing — any change can tank your loan at the worst possible moment.
9. The Right Agent Changes Everything
A buyer's agent costs you nothing (their commission is paid by the seller) and a great one will save you from emotional decisions, bad deals, and costly oversights. Look for someone with local market expertise, strong negotiation skills, and honest communication — not just the friendliest face at the open house.
10. Trust Your Gut — But Verify With Data
If something feels off about a property or a deal, it usually is. That said, don't let fear or overwhelm make decisions for you. Ask for the comps. Ask for the disclosure documents. Ask every question you have — no matter how basic it feels. The best agents love curious clients.
Lisa M. Lum
Licensed real estate agent specializing in helping first-time buyers navigate today's competitive market. Let's talk — your first home is closer than you think.