3 Things Every First-Time Homebuyer Should Know

Buying your first home is exciting — but it can also feel overwhelming. Between saving for a down payment, figuring out what you can actually afford, and trying to find the right place, there are a lot of moving parts. That’s why it helps to go into the process with clear expectations.

Here are three things every first-time homebuyer should know before starting the journey:

1. It’s More Than Just the Down Payment

When most people think about buying a home, they immediately focus on the down payment. While that’s important, it’s not the only expense to plan for. First-time buyers are often surprised by costs like:

• Closing costs (usually 2–4% of the purchase price)

• Earnest money deposits to show sellers you’re serious

• Inspection and appraisal fees

• Moving costs, furniture, and immediate home maintenance

By preparing for these expenses, it will help you avoid financial stress and set you up for a smoother transition into homeownership.

2. Get Pre-Approved Before Falling in Love With a House

One of the most common mistakes we see first-time buyers make is touring homes without being pre-approved. A pre-approval isn’t just a formality — it’s your “ticket to shop.”

With a pre-approval in hand:

• Sellers know you’re serious and will take your offer more seriously

• You’ll know exactly what you can afford (and won’t waste time looking at homes out of your budget)

• You may even be able to lock in an interest rate for a limited time

We always encourage our clients to get pre-approved first so the home search is smoother and less stressful from day one.

3. Location & Lifestyle Matter More Than the House Itself

It’s easy to get caught up in paint colors, countertops, or floor plans. But here’s the truth: those things can be changed. What can’t be changed is the location.

When helping our clients choose where to buy, we encourage them to consider:

• Commute time to work

• Nearby Schools, parks, and community amenities

• Long-term resale value

Buying in the right location often matters more than finding the “perfect” house. As the saying goes: it’s better to own the worst house on the best block than the nicest house in the wrong location.

Final Thoughts

Your first home purchase is a big step, but with the right preparation it doesn’t have to be intimidating. By budgeting beyond the down payment, getting pre-approved early, and focusing on location over cosmetic details, you’ll set yourself up for success — and enjoy the journey a lot more.

If you’re thinking about buying your first home in the Twin Cities, our team would love to guide you through the process. Reach out to us today, and let’s talk through your goals and options.

— Nevers | Perpich Real Estate Team