Buying your first home is a big milestone—exciting, but it can also be overwhelming. Between finding the right property, securing financing, and making long-term financial decisions, it can feel like there are countless moving parts. I’ve seen firsthand through my wife, Emily, who is a realtor in the Des Moines area, how important it is to be prepared when it comes to purchasing a home. To help you navigate the process, here are four important pieces of advice every first-time homebuyer should keep in mind.
1. Get Pre-Approved Before You Shop
Before you start attending open houses or browsing online listings, get pre-approved for a mortgage. A pre-approval gives you a clear picture of how much you can afford and shows sellers that you’re a serious buyer.
This step not only helps you set a realistic budget, but it also strengthens your position in competitive markets. Remember: pre-qualification is not the same as pre-approval. A pre-approval involves a more thorough review of your finances and carries greater weight with sellers.
2. Don’t Max Out Your Budget
Just because a lender approves you for a certain amount doesn’t mean you should spend it all. Aim to keep your monthly housing costs—including mortgage, property taxes, insurance, and maintenance—at or below 28% of your gross monthly income.
This cushion gives you more financial flexibility for unexpected expenses like repairs, job changes, or rising interest rates. Owning a home should feel manageable, not like a constant financial stretch.
3. Plan for More Than the Down Payment
Many first-time buyers focus heavily on saving for the down payment—but the upfront costs of buying a home go well beyond that. Closing costs, moving expenses, home inspections, and initial repairs can add up quickly.
A good rule of thumb is to set aside 2–5% of the home’s purchase price for closing costs, plus additional funds for furnishings and maintenance. Planning ahead ensures you won’t be caught off guard once the purchase is finalized.
4. Work With a Trusted Professional
Just as you turn to a trusted financial advisor to guide your long-term investments, you need a trusted real estate agent to help you navigate one of the biggest purchases of your life. A knowledgeable agent can walk you through everything from understanding the local market to negotiating the best terms and ensuring the process goes smoothly. Having the right professionals in your corner not only safeguards your investment but also gives you confidence as you pursue your financial goals.
Buying your first home is a major financial step, but with preparation and smart decision-making, it can also be a rewarding one. Taking time to get pre-approved, staying within your budget, planning for all the associated costs, and finding the right team will help set you up for success—not just on closing day, but for years to come.
At Harvest Point®, we believe homeownership is one of many financial decisions that should align with your long-term goals. If you’d like to learn more about working with one of our advisors, get in touch with our team by filling out our Discovery Questionnaire to schedule a 30-minute introductory call. We would love to discuss your legacy, values, and goals to determine if Harvest Point® would be a good fit to help you accomplish them.
Sources:
Consumer Financial Protection Bureau (CFPB). “What is mortgage preapproval?” https://www.consumerfinance.gov
U.S. Department of Housing and Urban Development (HUD). “Your First Mortgage.” https://www.hud.gov
National Association of Realtors (NAR). “Tips for First-Time Buyers.” https://www.nar.realtor