What I wish I knew before buying my first home

Buying your first home is one of the most exciting — and stressful — milestones you’ll ever hit. Looking back, so many homeowners will tell you they wish they’d known a few key things before signing on the dotted line. Here are some of those lessons, shared so you can avoid the same mistakes and walk into your new home with confidence.

1. I Wish I’d Got Pre-Approved Before Falling in Love With a House

It’s tempting to start house-hunting right away, but without mortgage pre-approval, you’re guessing at what you can really afford. Pre-approval sets a realistic budget and shows sellers you’re serious.

2. I Didn’t Realise the True Cost of Homeownership

The purchase price isn’t the full story. Taxes, insurance, maintenance, and surprise repairs all add up. Setting aside an emergency fund early would have made things a lot less stressful.

3. I Should’ve Researched the Neighbourhood More

A house can be perfect — but if the area has high crime rates, long commutes, or weak schools, you’ll regret it. Visit at different times of day, check crime stats, and chat to locals before making an offer.

4. I Let Emotions Lead My Decisions

It’s easy to get swept up in “the one” — but buying with your heart instead of your head can leave you overpaying or overlooking serious flaws. Stick to your budget and must-have list.

5. I Forgot to Think About Resale Value

Your first home might not be your forever home. Choosing a property with strong resale potential — good schools, desirable location, or flexible layout — will make it easier (and more profitable) to sell later.

6. I Skipped the Home Inspection (Big Mistake!)

That dream home can hide nasty surprises like plumbing leaks or foundation cracks. A professional inspection can save you thousands and give you negotiating power. Don’t ever skip it.

7. I Didn’t Shop Around for Mortgage Rates

Taking the first loan offer felt easier, but it cost me money in the long run. Comparing rates and terms from different lenders could have saved thousands over the life of the loan.

8. I Stretched My Budget Too Thin

Just because the bank says you qualify for a certain amount doesn’t mean you should spend it all. Being “house poor” isn’t worth it. A comfortable monthly payment means more freedom in your everyday life.

9. I Didn’t Fully Understand the Contract

Real estate contracts are full of legal jargon. Having a professional explain terms, contingencies, and timelines would’ve saved me from stress and potential risks. Always read the fine print.

10. I Tried to Do It Without a Realtor

Going solo felt like a money-saver, but I missed out on expert advice, negotiation skills, and connections that could have protected me from costly mistakes. A good Realtor is worth it.

Final Takeaway

Buying your first home is a learning curve — but you don’t have to learn the hard way. Take these lessons to heart, and you’ll step into homeownership feeling more confident and financially secure.

👉 Thinking about buying your first home? Get in touch and let’s chat about your needs - no obligations, no fuss.

These recommendations from industry thought leaders Robert J. Smith and Kelly Cole originally appeared in Morgan Stanley’s “Playbook: A Millennial’s Guide to Life & Money.”