The Truth About Buying Your First Home (That No One Tells You)

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Nicole Fernandez, Published with J. Poole & Partners Real Estate Group.

Buying your first home is exciting, empowering, life changing. But let’s be honest. Buying your first home is absolutely terrifying. 

Everyone talks about getting pre-approved, hunting for the perfect property on Zillow, and dreaming about paint colors and home decor. However, very few people talk about the reality behind buying your first home. 

There are hidden costs, mistakes almost everyone makes, and a variety of decisions that actually matter when you’re making one of the biggest purchases of your life. The best part of this experience? Finding a realtor and a loan officer that gives a damn about being transparent about it all, even if it causes the deal to fall through.

This guide breaks it all down, backed by data, expert insights, and quotes from national housing authorities, so you can move with confidence instead of confusion while navigating the choice to buy your first home.

The Hidden Costs No One Warns You About

Most first-time buyers hear terms like down payment and closing costs, but that barely scratches the surface. Buying a home comes with a variety of costs that are outlined in the offer and acceptance, which is often lost in translation once the home goes into contract. 

Closing Costs Can Be Higher Than You Expect

According to the Consumer Financial Protection Bureau (CFPB), closing costs typically range from 2% to 5% of the loan amount, a number that can surprise buyers who will only budget for the down payment. If you're buying a $350,000 home, closing costs could run between $7,000 and $17,500 - not to mention paying your realtor’s commission and the loan processing fees. Due to this shocking reality, the loan officer and the realtor are your main point of contact when budgeting for the transaction. 

First time home buyers often believe that this will always be on the lower end, though this is never guaranteed. The costs are updated as the process moves forward, and full transparency throughout the process depends on the realtor, title company, and the loan officer in charge of the transaction. 

Repairs & Inspections

Many buyers don’t take into account the repairs and inspection costs when an offer is initially written. In between all the ordinary documentation, many agents put this cost on the buyer since the law indicates that it is the buyer’s duty to scope out any issues with the property. While these can be billed through escrow, the payment typically comes out of the buyer’s pocket when they come to the signing table. 

Real estate agents who are proficient with deadlines can cause the buyer to lose their earnest money deposit - a deposit made when the offer made on a property is accepted as a fail safe for sellers who are taking their home off the market. When buyers go into contract, the preliminary inspections are required when using a typical loan. When deadlines aren’t met, especially the Notice of Required Repairs (NORR), buyers can be out thousands of dollars. 

Even if the home is bought with cash, there are repairs that can be negotiated when the real estate agent works with the buyer to write up the NORR. This is an open negotiation, and whatever isn’t repaired, the buyer will take on when the home closes - adding more financial strain on the buyer if they are not able to do these repairs.  

The Cost of Homeownership Starts Immediately

Buying the house of your dreams isn’t the only investment home owners make. Immediately after the purchase, home owners have expenses including home maintenance, repairs, and replacements — even in newer properties.

And emergency repairs? Experts recommend that homeowners budget 1–2% of the home’s value annually for repairs and upkeep, especially in the first year.

One way to mitigate this is by getting home owners insurance, though there are cool down periods that make the buyer wait up to three months to use it for emergencies. However, depending on the emergency, the repairs may not be covered by home owner’s insurance. 

Property Taxes and Insurance Will Change

First-time homeowners often believe their monthly payment will stay the same forever. But property taxes adjust annually, and insurance premiums can increase with market changes or claims.

Property taxes are adjusted due to county assessments, mill rates, and rising home values — and insurance premiums often increase as well. While these changes don’t happen right away, it is definitely important for loan officers to disclose this fact throughout the escrow process so buyers aren’t surprised.

The Mistakes Almost Everyone Makes Their First Time

Even the smartest, most prepared adults are not rehearsed in the home buying process until they have bought a house themselves. Buying a home has many requirements when getting a loan, and there are mistakes the typical first time home buyer will make without realizing it.

Shopping for Houses Before Shopping for a Lender

Not getting pre-approved, or choosing the wrong lender, can cost you thousands. Without a preapproval, an offer cannot be written on a home, potentially putting the buyer at risk of losing the home they have their sights set on. 

Shopping around for a good lender is important, since many companies sell you on customer service rather than expertise, accuracy, discounts and rates. While customers might see a five star rating on the loan officer they’re thinking of using, many don’t realize that reviews can be bought and coerced. 

The fine print is the most important aspect of finding a loan officer, as well as being proactive in finding any discounts to ensure the buyer saves as much money as possible. Buyers are encouraged to negotiate loan offers, since this can save them thousands of dollars over the course of their loan. 

Since many home buyers are new to the process, it never occurs to them that loan companies might be preying on their incompetence, hoping to gain their business without saving the buyer any money after the transaction has ended. That's money most buyers don’t know they’re leaving on the table.

Forgetting That “Approved” Doesn’t Mean “Affordable”

A lender might approve you for $450,000, but that doesn’t mean you can comfortably live at that price. The price a person is approved for varies, though it is up to the loan officer to help the buyer find a price that is reasonable monthly over the course of the loan, since the majority of home buyers who use a loan sign to have the rate for 30 years. 

Experts say that being approved for a mortgage does not guarantee that the payment fits your financial reality, as a realistic budget includes buffer money for savings, emergencies, utilities, groceries, commuting, and lifestyle—not just mortgage and insurance.

What Truly Matters When Buying Your First Home

After helping countless first-time buyers, real estate pros almost unanimously agree on this: the things that truly matter aren’t the flashy features. Location, long-term affordability, and equity are essential for a first time home buyer to prioritize, as well as the affordability of the purchase itself.

Buying your first home doesn’t have to be overwhelming. When you know the truth about the real costs, the real risks, and the real priorities, you protect yourself long-term.

A great real estate agent, a trustworthy lender, and a clear plan can make your first major move not just successful, but empowering.

Whether your home is a stepping stone or the place you plan to grow old, the most important thing to remember is that you deserve to walk into homeownership informed, confident, and in control.