Advice for First-Time Home Buyers

While family and friends offer great advice, tapping into the expertise of real estate agents and lenders is essential for buying a home. We asked six agents for their top home-buying tips to help you confidently find a house that fits your lifestyle and budget.

Here are 30 expert tips to guide your journey to homeownership in any market.

Jump to a section:

• Budgeting and financing tips
• Finding the right property
• Choosing the right agent

Budgeting and financing tips

Financial preparation is the foundation of a successful home search.

1. Focus on your monthly comfort zone. 

Shelly Salas, a broker with Your Home Sold Guaranteed Realty and lead for The Salas Team in Killen, Texas, asks her first-time buyers how much they’re currently paying in rent and whether they’re comfortable going over that in a mortgage payment. For example, would the mortgage on a $500,000 home keep you from doing other things you love?

“Are you going to be able to go to the movies? Do you want to be able to afford the house and not eat ramen noodles every day? We want [buyers] to be in a comfortable scenario,” Salas says.

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2. Research government programs for lowering your loan amount

Government programs can help buyers get into the housing market, even if one of the buyers has previously owned a home. Salas says buyers whose spouse or partner has never owned a home can qualify for loans available only to first-time buyers as long as their name was not registered on the deed.

The programs include down payment assistance, low interest loans, grants, forgivable loans, deferred payment loans and other incentives that help lower the amount you have to borrow. 

3. Explore different loan types

There are various loans you may qualify for depending on your financial situation, where you’re buying, and more. Here are some common types of loans:

• Conventional loans: Any loan that's not backed by the federal government.
• Jumbo loans: Loans that are over a certain amount of money.
• Government-backed loans: Federal Housing Administration (FHA) loans; Veterans Administration (VA) loans; and USDA loans.

4. You may be able score a lower rate by assuming the seller’s mortgage

If a seller has a VA or FHA loan, it may be assumable. This allows you to take over their existing mortgage — including their original, potentially lower interest rate — for the remaining balance of the loan. This can save you thousands over the life of the loan compared to current market rates.

5. Negotiate concessions

Salas encourages buyers to negotiate. She says you shouldn’t assume a seller won't budge on something you want, like fixing a leaky roof or giving you some funds to lower your closing costs.

“As a buyer, you may go in — and because it’s an emotional purchase — you might say ‘OK’ if the seller tells you no. We come in and negotiate for the buyer,” she says. “We’re able to pull market data and see if the neighbors paid concessions. If so, we can share that data with the seller, and say, ‘I know you’re saying you don’t want to pay for this, but let me show you what your neighbors did. It’s powerful.” 

6. Consider putting less than 20% down

While buyers are usually required to pay private mortgage insurance if they put down less than 20%, Antonia Mander, a realtor with The Nickley Group in Orlando, Florida, says there are plenty of loans — especially for first-timers — that require far less than 20% down.

Loan types that do not require 20% down:

• Conventional loans: 3% (for most first-time homebuyers)
• FHA loans: 3.5% to 10% depending on your credit score
• VA loans: 0%
• USDA loans: 0%

7. Get pre-qualified before you start shopping

Winston Murray, founder/principal broker for Works Real Estate Company in Portland, Oregon, says being pre-approved or pre-qualified for a home loan by a lender can do several things: show sellers you’re serious about buying; tell you how much you can borrow; and lets you move faster once you find a home you want to purchase. Murray says you just need to have a three-minute conversation with a lender.

8. Be aware of potential hidden costs

Marcus Larrea, founder and team lead, Palm Paradise Realty, in southwest Florida, says “something may seem affordable, but in reality it's not because of all the hidden fees and costs on the back end.”

That often includes unexpected back-end expenses like flood insurance premiums, condo special assessments, and immediate repair needs that an experienced agent or contractor can help you identify before you close.

9. Remember that you may be able to refinance down the road

If the home fits your budget today, you don’t need to wait for "perfect" rates, says Larrea. He suggests finding something that meets your budget and trying to get into a house sooner than later, noting that you can refinance into a lower rate if they drop in the future.

10. Weigh the costs of waiting

Jason Farris, founder and author at FresYes Realty Group in Fresno, California, points out that home prices often rise faster than people can save. Getting into a home now allows you to start building equity immediately, so consider that when deciding whether to wait to buy a home. Farris asks buyers to consider homes that don't cross off as many boxes, but will let you get into a home and boost your equity sooner.

Finding the right property

Don't let a lack of "perfect" homes stop you.

11. Identify your non-negotiables

List five things a home must have. If a property lacks one of your non-negotiables, skip the tour to avoid falling in love with a home that doesn't actually meet your needs.

12. Examine HOA rules around finances

If buying in a community with a homeowners association, review their budget. A poorly funded HOA could result in a special assessment — a large, unexpected bill for community repairs. Mander suggests asking your lender to verify documents to ensure your neighborhood’s homeowner’s association allows financed offers.

13. Weigh the pros and cons of a fixer-upper vs. a turnkey home

Murray says that a fixer-upper can help you get the location, square footage, or layout you want without having to pay top dollar, but it also likely requires a lot of work and money. Meanwhile, a turnkey home is move-in ready, but usually costs more — roughly 3% more than comparable fixer-uppers.

14. Consider new construction

“The more houses I sell, the more I like new construction,” Murray says. “Builders often provide financial incentives for buyers.”

These include things like rate buy-downs or closing cost credits that traditional sellers cannot match. Plus, you’ll be the first to live in this new construction home, if that matters to you.

15. Know when to compromise

“Regardless of the price point, it's tough to find everything on your dream list. There's always a little give and take,” Murray says.

Keep that list of non-negotiables in mind, but be prepared to compromise on some things — like having granite counters instead of quartzite — for a better home location or floorplan.

16. Consider house hacking

House hacking means you own the whole home, but you rent out part of it. For example, Murray says, you could buy a duplex or a home with a basement suite, which allows you to rent out space to offset your mortgage payment. 

17. Watch lingering listings

Homes that have been on the market for 30+ days often have motivated sellers. These are prime opportunities to negotiate on price or repairs. When browsing home listings on Zillow, you can see how long that property has been on the market; you can even filter for “days on market.”

Murray’s hot tip? Look for homes with bad photos or poor staging. Buyers may write those listings off even if there’s nothing wrong with the property.

18. Pay attention to lot size

Think about how you’ll use your outdoor space in the next five to ten years — whether that's a quiet garden, a massive play area, or enough distance from the house next door to feel truly private. For example, more space gives you the room to build an Accessory Dwelling Unit (ADU) or "casita" for guests or rental income. Note you can filter by lot size when browsing homes on Zillow. 

19. Prioritize things you can't change

Farris advises looking for a home that has all the things you want that may be expensive to change or can’t be changed at all. For example, you can't change the lot size, the neighborhood, or the amount of natural light a home has. Focus on these permanent features rather than paint colors or old appliances, which you can change later.

20. Look for flexible spaces

If you work from home, want a craft room, a wellness space, or just some extra space to do or store whatever you want, focus on homes that may have more room than you absolutely need. This could also give you the opportunity to put up a wall and create a new room. Farris says an oversized three-bedroom can often be converted into a four-bedroom home if you need it done.

Choosing the right agent

The right partner and the right mindset can win the deal.

21. Find an experienced agent

Salas suggests looking for deep market knowledge and multiple strategies to save you money. Experience matters when things get complicated. You can connect with local agents on Zillow. Then ask potential agents questions, like how many homes they’ve helped buyers close in your specific area over the last year.

22. Shop around for an agent

Consider interviewing at least two or three agents. And when you do, Mander advises looking at more than just chemistry; Ensure they have the right mix of market knowledge and communication style, too.

23. Realize your journey is unique

You may have friends and family who bought a home recently and want to share their experience with you, like the interest rate they received, how easy it was to find “the one,” and so on. But every road to home is different, and any good agent will know this. Mander, for example, says someone who bought in 2020 or 2021 is going to have a wildly different experience than someone buying a home in today’s market.

Consider how market conditions change monthly. Make sure your agent is giving you advice based on today’s inventory and rates, not the market from two years ago. 

24. Bring a contractor to the inspection

If an inspection reveals issues with the home, having a contractor walk through can provide an accurate quote, helping you decide whether you should move forward with buying the house, or ask for a price reduction or other concession. This can help you budget for repairs before the deal is final, and save you trouble and money.

25. Tap your agent’s connections

Larrea says a well-connected agent acts as a concierge, offering you services they have ties to to help you with your home needs. They can put you on a priority list with trusted plumbers, electricians, and floor installers. Even more important — an agent can connect you with a lender who can offer you competitive interest rates.

26. Be emotionally prepared

Trent Robertson, a real estate agent with The Apollo Group with eXp Realty in Denver, Colorado, reminds buyers that this is a major life milestone. It is normal to feel overwhelmed; a good agent will help manage the stress and help you feel confident. He says there’s more to buying a home than having your down payment ready — you have to be mentally prepared for the ups and downs of the process.

“The best time to buy is when you're ready, and it doesn't [only] mean financially ready. It really means mentally and emotionally ready,” he says.

27. Negotiate beyond price

Sometimes a seller needs more than money. Robertson says his clients have won multiple-offer situations without being the highest dollar because he took the time to learn what the seller needs.

For example, offering a rent-back (letting the seller stay for 30 days after closing) can win a deal even if your offer isn’t the largest figure.

28. Hire an agent who will collaborate with the listing agent

Speaking of needs, Robertson says a proactive buying agent calls the listing agent to learn what the seller wants from this deal. A human-to-human approach often uncovers ways to make your offer stand out. Robertson says he’s been a part of several deals where he’ll learn that nobody else has called the listing agent to discuss the sale. He says talking over the phone could get you better concessions than if no phone calls were to happen at all.

29. Avoid the “us vs. them” mentality

Win-win deals are possible in real estate. When both parties collaborate toward the goal of closing, the process is smoother and less likely to fall apart during inspections. So find an agent who believes in this approach.

“Some people think that agents are here to compete and fight the other side when we're not,” Robertson says. “The goal is to come to an accomplished mission of selling and buying the home. Collaboration can actually lead to a lot more stronger offers.”

Ready to start your home buying journey?

The right expert makes all the difference. Connect with a local agent to start touring homes today.

*The agents are all members of Zillow’s Premier Agent Advisory Board and Agent Advisory Board Alumni, a 27-member panel of agent partners who provide insights and industry expertise to Zillow.