5 Things Nobody Tells First-Time Buyers

5 Things Nobody Tells First-Time Buyers

The honest truths that save you money, stress, and regret.

Buying your first home is one of the most exciting and overwhelming experiences of your life. The problem? Most of the advice floating around is either outdated, oversimplified, or designed to scare you into staying a renter. Here's what the industry often forgets to mention.

 Your credit score doesn't have to be perfect

MYTH: You need a 750+ credit score to buy a home.

Many loan programs accept scores as low as 580 (FHA) or even 500 with a larger down payment. What matters more is your overall financial picture — income stability, debt-to-income ratio, and payment history. Pull your free credit report at AnnualCreditReport.com before you do anything else.

Pro tip: Even a 20-point score improvement can save you thousands in interest over the life of your loan. Ask your lender about rapid rescoring.

 You don't need 20% down

MYTH: You must save 20% before you can buy.

The 20% rule is a myth that keeps renters renting. FHA loans require just 3.5% down. Conventional loans start at 3%. VA and USDA loans offer 0% down for qualifying buyers. Down payment assistance programs exist in nearly every state — many go unclaimed because buyers don't know to ask.

Pro tip: Ask your agent and lender about local DPA (Down Payment Assistance) grants before assuming you're not ready.

The listing price is rarely the final price

MYTH: Whatever a home is listed at is what you'll pay.

Negotiation is part of every transaction. In a buyer's market, you can often negotiate price reductions, seller concessions (they pay part of your closing costs), repairs, or appliances included. Even in competitive markets, the strategy matters — knowing when to offer list price vs. under vs. over is where a skilled agent earns their value.

Pro tip: Seller concessions can be used to buy down your interest rate — sometimes more valuable than a price reduction.

 Closing costs catch most first-timers off guard

MYTH: Your down payment is your only upfront cost.

Closing costs typically run 2–5% of the loan amount on top of your down payment. That's $6,000–$15,000 on a $300k home. They include lender fees, title insurance, appraisal, prepaid taxes and insurance, and more. Request a Loan Estimate early so nothing surprises you at the closing table.

Pro tip: You can ask the seller to cover some or all of your closing costs as part of your offer — especially in slower markets.

 The inspection is non-negotiable — even in hot markets

MYTH: Waiving the inspection will make your offer more competitive.

Skipping an inspection to win a bidding war is one of the riskiest moves a first-time buyer can make. A $400 inspection can uncover $40,000 in hidden problems. If you're in a competitive market, consider an inspection contingency that's informational only — you're not asking for repairs, just protecting yourself from catastrophic surprises.

Pro tip: Attend the inspection in person. Walk through with the inspector and ask every question you have. It's one of your best learning opportunities as a new homeowner.

Ready to take the first step?

Every buyer's situation is different. Let's sit down, talk through your goals, and build a plan that actually works for you — no pressure, no jargon.

Love where you live! Let me help get you there." — Jennifer Haugebak, Phoenix Living

Jennifer Haugebak · Phoenix Living · Real Broker · jennifer@phoenixlivingre.com · (602) 529-5107 · @phoenixlivingaz