5 Things Every First-Time Buyer Should Know Before Closing

Buying your first home is one of the most exciting, and sometimes overwhelming, experiences of your life. After helping dozens of first-time buyers close on homes across the Greater Sacramento area, I've seen the same questions and surprises come up again and again. Here are the five things I wish every first-time buyer knew before they got to the closing table.

1. Get pre-approved, not just pre-qualified

There's an important difference between the two. Pre-qualification is a quick estimate based on information you provide verbally. Pre-approval means a lender has actually verified your income, assets, and credit, and it carries a lot more weight with sellers. In a competitive market like Sacramento, submitting an offer without a solid pre-approval letter is a significant disadvantage. Do this before you fall in love with a house.

2. Your down payment isn't your only upfront cost

Many first-time buyers budget carefully for the down payment and then get caught off guard by closing costs, which typically run between 2% and 5% of the loan amount. On a $500,000 home, that could be $10,000–$25,000 on top of your down payment. There are also inspection fees, appraisal fees, and moving costs to factor in. Work with your lender early to get a full picture of what you'll need at closing.

3. The inspection is not optional

I understand the temptation to waive an inspection to make your offer more competitive. But a home inspection is your opportunity to understand exactly what you're buying. A good inspector will look at everything from the roof to the foundation, and what they find could give you negotiating leverage, or save you from a very expensive mistake. Never skip it.

4. Don't make any big financial moves before closing

Once you're in escrow, do not open new credit cards, make large purchases, change jobs, or move money between accounts without talking to your lender first. Lenders re-verify your financial situation right before closing, and any significant change can delay or even derail your loan. This is not the time to buy furniture on credit or lease a new car.

5. Your agent works for you, use them

As your buyer's agent, my job is to protect your interests at every step of the transaction. That means negotiating on your behalf, flagging red flags in disclosures, interpreting the contract, and guiding you through a process that most people only experience a handful of times in their lives. Ask every question you have, no matter how small. There are no silly questions when you're making the largest purchase of your life.