A Homebuyer's Guide to Purchasing Your First Home 

If you're asking yourself, "What is the first step to buy a house?" you're not alone. Buying your first home is one of life's biggest milestones, and with the right preparation, it can also be one of the most rewarding. From understanding your finances to navigating mortgages and finding the right real estate agent, several important steps can set you up for success. 

Many first-time buyers assume the process starts with browsing listings online or attending open houses. While those are certainly an exciting part of the journey, there are several key steps to put you in a much stronger position when you find a home you love. 

Before you start touring homes, focus on three essentials: understanding your finances, getting pre-approved for a mortgage, and partnering with a knowledgeable real estate agent.  Laying this groundwork will make the buying process smoother, help you shop with confidence, and set you up for success throughout the buying process. 

Where do I start? 

The best place to begin is with your finances. Understanding what you can comfortably afford and whether you're financially ready for homeownership will help you set realistic expectations before you start looking at homes. 

To get started, set aside an hour or two to review the following: 

• Monthly income- Lenders use your income to calculate your debt-to-income (DTI) ratio and determine how much you may be able to borrow for a mortgage comfortably. 

• Monthly expenses- Reviewing your regular expenses helps you understand how much room you have in your budget for a monthly mortgage payment and other homeownership costs.  

• Existing debt- Student loans, car loans, credit cards, and other debts affect your debt-to-income ratio, which plays a major role in mortgage approval. 

• Credit score- Your credit score can impact whether you qualify for a mortgage, as well as the interest rate and loan terms you'll receive. 

• Savings- Having money saved for a down payment can lower your loan amount, reduce your monthly payment, and may help you qualify for better financing options. 

• Emergency savings- Maintaining an emergency fund helps you prepare for unexpected expenses, such as home repairs or temporary changes in income, after you purchase your home. 

Knowing where you stand financially allows you to focus on homes that fit comfortably within your budget, making your search more enjoyable and efficient. It helps give you a realistic picture of what you can comfortably afford.  

Your credit score is also very important as it can impact your mortgage approval as well as the interest rate you’ll receive. Typically, borrowers with higher credit scores often qualify for better loans, which can save thousands of dollars over the time of a mortgage.  

Every buyer begins their homeownership journey from a different financial starting point. Taking time to strengthen your finances can increase your buying power and help you feel more confident when you're ready to purchase. Paying down debt, improving your credit score, and building your savings can all strengthen your buying power before you begin the process of buying a home. Once you understand your finances, you’ll be ready for the next big step: determining your budget and getting pre-approved for a mortgage.  

Want more information on buying your first home? Visit BUYING YOUR FIRST HOME 

Determining How Much You Can Afford 

One of the most valuable things you can do before beginning your home search is determine how much house you can comfortably afford. 

While a lender can tell you the maximum amount you qualify to borrow, that doesn't necessarily mean it's the amount you should spend. Instead, think about what monthly payment fits comfortably into your lifestyle while still allowing room for savings, vacations, retirement contributions, and unexpected expenses. 

Your affordability depends on several factors, including: 

• Income and employment stability  

• Monthly payment obligations  

• Student loans  

• Car payments  

• Credit card payments  

• Credit score and credit history   

• Savings available 

• Down payment  

• Closing costs  

• Emergency fund  

• Interest rates  

• Property taxes, insurance, and housing costs  

Many financial experts recommend following the 28% rule, which suggests spending no more than about 28% of your gross monthly income on housing expenses. 

Read more about how much you can afford in our blog and use this mortgage calculator to estimate your monthly payment before you begin house hunting. 

Get Pre-approved For A Mortgage 

Once you’ve determined your budget, your next priority should be getting pre-approved. A mortgage pre-approval is a way for the lender to estimate how much they are willing to lend, based on your financial status. During this process, lenders will review your employment history, income, tax returns, pay stubs, bank statements, and credit history.  

Many buyers confuse pre-qualification with pre-approval, although they aren't the same. A pre-qualification is usually based on information you provide yourself, while a pre-approval involves a more detailed financial review and carries more weight when making an offer.  

Getting pre-approved can offer several advantages: 

• You’ll know your realistic budget 

• Sellers often see buyers who are pre-approved as more competitive 

• You can move quickly when you find your perfect home 

• There are fewer surprises during the financing process 

The Masiello Group proudly partners with CMG Home Loans to help buyers connect with experienced mortgage professionals who can answer financing questions and guide them through the pre-approval process. For more information on getting pre-approved, follow the link below.  

GETTING PRE-APPROVED 

Save For More Than Just The Down Payment 

Oftentimes, first-time buyers focus on saving for the down payment only, but there are many other additional costs to plan for when purchasing a home. Some of these costs include closing costs, home inspection fees, appraisal fees, homeowners insurance, property taxes, etc. For example, closing costs alone can cost between 2-5% of the home's purchase price.  

It is a good idea to keep an emergency fund after closing as well. Owning a home comes with unexpected expenses like replacing the water heater, repairing the roof, or fixing an appliance. Planning for these costs ahead of time can help reduce future financial stress once you’ve moved in.  

Find The Right Agent 

Buying your first home involves more than finding a property you like. Finding an experienced agent who serves as an advocate throughout the process as they can help you find homes in your budget, understand the market, write competitive offers, negotiate and navigate contracts, and much more. Having an experienced realtor can make a significant difference, especially when the market is competitive. 

The Masiello Group has been helping buyers throughout Northern New England for decades. Our agents understand local neighborhoods, pricing trends, and market conditions, which allow first-time buyers to feel confident throughout the process.  

Ready to get started? Connect with a Masiello agent who can guide you through every step of the process. 

Start The Home Search 

Now that you’ve evaluated your finances, the next step is the exciting part- searching for homes. Before scheduling showings, create a list of your priorities and things you need in a home. Separate your list into “needs” and “wants”.  

Things on your “needs” list may include several bedrooms, commute time, local schools, or even yard size. “Wants” could include a furnished basement, swimming pool, or a walk-in closet. Every home has unique features, so focusing on your priorities will help you find the one that best fits your lifestyle and goals. Focusing on your priorities helps you feel confident about decisions without getting distracted by your “wants”.  

When searching, it is important to avoid making major changes in your finances. Avoid opening a new credit card, financing a vehicle or making a large purchase until after you’ve closed on the home. All of these things could affect your mortgage approval.  

Browse available homes across Northern New England to begin your search with the link below.  

SEARCH MASIELLO HOMES  

Make An Offer 

Once you've found the right home, it's time to make an offer. Your real estate agent will help you determine a competitive offer price by reviewing recent comparable home sales, current market conditions, and the property's overall value. They will also help you decide which contingencies to include, such as financing or a home inspection, and negotiate with the seller on your behalf if needed.  

In competitive markets, homes can sell quickly, making it even more important to have an experienced real estate professional guiding you through the process. If the seller accepts your offer, the home officially goes under contract, and you'll move on to the inspection, appraisal, and final steps before closing. 

Complete The Inspection And Appraisal 

After your offer has been accepted, the next steps are the home inspection and appraisal. While they may sound similar, they serve two different purposes. A home inspection evaluates the property's overall condition and can identify issues that may need repairs or further evaluation, giving you a better understanding of the home's condition before finalizing the purchase.  

A home appraisal, on the other hand, is required by the lender to determine the home's fair market value and ensure it supports the loan amount. If the inspection uncovers significant concerns, your real estate agent can help negotiate repairs, credits, or other solutions with the seller before closing. Completing both the inspection and appraisal helps protect your investment and gives you greater confidence as you move toward homeownership. 

Closing On Your First Home 

Closing day is the final step in the home-buying process and the moment you've been working toward. Before closing, you'll complete a final walkthrough of the property to confirm that it's in the agreed-upon condition and that any negotiated repairs have been completed. 

During the closing appointment, you'll review and sign the necessary paperwork, finalize your mortgage, and pay any remaining closing costs. Although there is paperwork to complete, your real estate agent, lender, and closing attorney or title company will guide you through each document and answer any questions along the way. 

Once everything has been signed and finalized, you'll receive the keys to your new home and officially become a homeowner. After weeks or even months of planning, searching, and preparing, you can finally celebrate reaching one of life's biggest milestones and begin making your new house feel like home. 

Buying With Confidence 

If you've been asking yourself, "What is the first step to buying a house?" The answer begins with preparation. Understanding your finances, setting a realistic budget, getting pre-approved for a mortgage, and working with an experienced real estate professional can make the home-buying process much smoother from start to finish. 

At The Masiello Group, we know that buying your first home is about more than just finding the right property—it's about feeling confident every step of the way. With decades of experience helping buyers throughout Maine, New Hampshire, Vermont, and Massachusetts, our knowledgeable agents are committed to providing personalized guidance, local market expertise, and support from your first showing to closing day. 

Whether you're just beginning to explore homeownership or you're ready to make your first offer, The Masiello Group is here to help you navigate the process with confidence. When you're ready to take the first step toward buying a home, our team is ready to help you find the place you'll be proud to call home. Use the link below to find an agent to help you through this process.  

FIND A MASIELLO AGENT