Buying Your First Home? Here’s What You Should Know

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Becoming a homeowner is something every young adult dreams about. Homeownership isn’t merely part of adulting, but it’s also a rite of passage and a milestone. However, the home buying experience can be confusing and tumultuous for first-time homebuyers.

So much goes into buying a new home, from finding the real estate company to actually closing the purchase. However, if you carefully chart your course and plan carefully, you can have peace of mind that everything will work out fine. Continue reading to get some tips every first-time buyer and homeowner needs to know.

Find a real estate agent who understands your vision and budget.


Buying your first home is such an exciting venture that it’s easy to skip important steps in the process in a rush to reach the finish line. However, one of the most critical steps in the home buying process is finding the right real estate specialist to walk with you through the process.

If you select the first real estate agent you talk to, it’s unlikely that you’ll end up with the best agent for your specific needs. The key to finding the right agent is to look for someone who respects your vision and understands your budget.

Real estate agents earn a commission for their sales, so they’re under pressure to bring home the bacon, meaning their interests and yours could conflict if you’re not on the same page. The Joe Dickerson Group is one of the top real estate companies in the Bay Area because they prioritize the needs of their customers over profits. Whether or not you plan on moving to San Francisco, you should look for a real estate agent who embodies what Joe Dickerson expects from his real estate agents.

You need a home warranty.


One of the inevitabilities of being a homeowner is that things will break and malfunction. We’re not exactly speaking about Murphy’s Law here, but the fact is home systems such as appliances and plumbing are subject to failure. So, it’s a good idea to plan for the worst before the worst happens.

The good news is that you can purchase a home warranty when buying a house. Different home warranty companies offer varying coverage options and rates, so you should do your due diligence before settling on a home warranty.

Location significantly impacts housing prices.


If you’re planning on moving to a new city, it’s important to take the cost of living into account. Big cities and coastal cities are typically the most expensive, with New York, Los Angeles, and the Bay Area being prime examples. However, small towns and cities in the South and Midwest—except Chicago—tend to be much more affordable.

We wouldn’t dare discourage you from moving to the Big Apple, the Golden State, or Chitown if that’s your dream. However, you should take time to consider the cost of living before making such a move.

Your mortgage should be proportionate to your income.


A lot of homeowners lost everything they worked for in The Great Recession. It may have been a dog’s lifetime ago, but the lessons learned are as fresh as a new wound. The number one takeaway from that dark period in American history is that you shouldn’t take a mortgage that’s above your pay grade, even if the bank wants to give it to you.

The rule of thumb is that your monthly mortgage payments shouldn’t be more than a third of your monthly income after taxes. As long as you follow that golden rule, you won’t have to learn the hard way what so many others learned during the 2008 housing crash.

Purchasing a home can be an overwhelming process for inexperienced home buyers. However, with proper planning and preparation, you can significantly ease the process. The keys to success are being selective about location, getting your finances in order, and protecting your investment with a home warranty. When you do everything right in the buying process, there’s nothing left to do except to enjoy your new home.

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