First-Time Home Buyer's Guide

1. How many transactions have you completed in the past year?
2. What percentage of your clients are first-time home buyers?
3. Are you familiar with the neighborhoods I'm interested in?
4. Do you work full-time as a realtor?

1. What's your preferred method of communication (text, email, phone)?
2. How quickly do you typically respond to client inquiries?
3. Will I be working directly with you, or will I work with a team?
4. How many clients are you currently working with?
5. Are you available for evening and weekend showings?

1. What's your strategy for finding homes that meet my criteria?
2. How do you help clients in competitive bidding situations?
3. What's your negotiation approach?
4. Do you have relationships with preferred lenders, inspectors, and title companies?
5. Can you provide references from recent first-time home buyers?

1. What's the current state of the local market?
2. What price range should I realistically consider based on my budget?
3. What are the typical closing costs in this area?
4. How long are homes staying on the market in my target neighborhoods?

● ❌ Pressure to make quick decisions without proper research
● ❌ Reluctance to answer questions or provide references
● ❌ Poor communication or delayed responses
● ❌ Lack of knowledge about local market conditions
● ❌ Pushing you toward properties outside your budget
● ❌ No written buyer representation agreement

1. Are you a mortgage broker or a direct lender?
2. How long have you been in the mortgage industry?
3. What types of loan programs do you offer?
4. Are you licensed in Texas? (or your state)

6. What loan programs am I eligible for based on my financial situation?
7. What are the differences between conventional, FHA, VA, and USDA loans?
8. What is the minimum down payment required for each program?
9. Are there any first-time home buyer grants or assistance programs available?
10. What credit score do I need to qualify?

11. What interest rate can you offer me today?
12. Is this rate locked, and for how long?
13. What are the closing costs, and can you provide an itemized breakdown?
 14. Are there any lender fees, origination fees, or points?
15. What's the difference between APR and interest rate?
16. Can closing costs be rolled into the loan or negotiated with the seller?
17. What's my estimated monthly payment (including principal, interest, taxes, insurance, and PMI if applicable)?
18. How much do I need for earnest money and down payment?
19. What documents will I need to provide for pre-approval?
20. How long does the pre-approval process take?

21. What's the timeline from pre-approval to closing?
22. What happens if interest rates drop after I lock my rate?
23. Can I buy down my interest rate, and is it worth it?
24. What are the requirements for PMI (Private Mortgage Insurance), and when can I remove it?
25. Will you be available throughout the entire process to answer questions?

Red Flags to Watch For:

● ❌ Refusing to provide a Loan Estimate in writing
● ❌ Guaranteeing approval before reviewing your financial documents
● ❌ Pushing you to borrow more than you're comfortable with
● ❌ Hidden fees that aren't disclosed upfront
● ❌ Poor communication or unavailability
● ❌ Pressure to lock a rate immediately without explanation

● Principal (the loan amount)
● Interest (the cost of borrowing)
● Property Taxes (varies by location)
● Homeowners Insurance (required by lenders)
● PMI - Private Mortgage Insurance (if down payment is less than 20%)
● HOA Fees (if applicable)

● Electric
● Gas
● Water/Sewer
● Trash
● Internet/Cable

● Rule of thumb: Budget 1-2% of home value annually
● Example: $300,000 home = $3,000-$6,000/year or $250-$500/month

● Lawn care/landscaping
● Pest control
● HVAC maintenance
● Appliance repairs/replacements
● Home warranty (optional but recommended)

● ✅ Gather financial documents (pay stubs, tax returns, bank statements)
● ✅ Get pre-approved (not just pre-qualified)
● ✅ Understand your budget and buying power

● ✅ Create your wish list and must-haves
● ✅ Research neighborhoods and school districts
● ✅ Attend open houses and schedule showings
● ✅ Take notes and photos (with permission)
● ✅ Don't fall in love with the first house you see!

● ✅ Work with your realtor to determine a competitive offer price
● ✅ Include contingencies (inspection, appraisal, financing)
● ✅ Submit earnest money deposit
● ✅ Be prepared for counteroffers and negotiations

● ✅ Schedule home inspection (within 7-10 days of acceptance)
● ✅ Review inspection report and negotiate repairs if needed
● ✅ Finalize mortgage application and provide additional documentation
● ✅ Order appraisal (lender requirement)
● ✅ Purchase homeowners insurance
● ✅ Conduct final walkthrough (24-48 hours before closing)

● ✅ Review Closing Disclosure (at least 3 days before closing)
● ✅ Wire or bring certified funds for closing costs and down payment
● ✅ Sign all documents (lots of them!)
● ✅ Receive keys to your new home!
● ✅ Celebrate! 🎉

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● ☐ Roof condition and age
● ☐ Foundation (cracks, settling)
● ☐ Siding/exterior walls condition
● ☐ Driveway and walkway condition
● ☐ Drainage and grading
● ☐ Fence condition (if applicable)
● ☐ Trees (too close to house? Dead branches?)

● ☐ Signs of water damage (ceiling, walls, floors)
● ☐ Window and door condition
● ☐ Flooring condition
● ☐ Wall and ceiling condition
● ☐ Electrical outlets and switches
● ☐ Plumbing (turn on faucets, flush toilets)
● ☐ HVAC system age and condition
● ☐ Water heater age
● ☐ Kitchen appliances included and working
● ☐ Storage space
● ☐ Natural light
● ☐ Noise levels

● ☐ Proximity to work/school
● ☐ Safety and crime rates
● ☐ Nearby amenities (shopping, dining, parks)
● ☐ Future development plans
● ☐ HOA restrictions and dues
● ☐ School district ratings (if applicable)

● Base your offer on comparable sales
● Consider market conditions (buyer's vs. seller's market)
● Factor in needed repairs or updates

● Ask seller to contribute 2-3% toward closing costs
● Common in competitive markets with good offers

● After inspection, request repairs or credits
● Prioritize major issues over cosmetic ones
● Be reasonable—don't nickel and dime

● Refrigerator, washer, dryer
● Window treatments
● Outdoor furniture or equipment

● Flexible closing dates can be leverage
● Quick close may be valuable to some sellers

● Inspection contingency (always include!)
● Appraisal contingency (protects you if home doesn't appraise)
● Financing contingency (protects you if loan falls through)
● Home sale contingency (if you're selling another home)

✅ Get pre-approved before house hunting
✅ Stay within your comfortable budget
✅ Be responsive to your realtor and lender
✅ Ask questions—lots of them!
✅ Get a thorough home inspection
✅ Review all documents carefully before signing 
✅ Keep your finances stable (don't open new credit, make large purchases, or change jobs) 
✅ Plan for moving costs and immediate home needs
✅ Build an emergency fund for home repairs

❌ Max out your budget—leave room for unexpected costs
❌ Skip the pre-approval process
❌ Make major purchases or open new credit during the process
❌ Ignore red flags during showings or inspection
❌ Rush into a decision due to pressure or FOMO
❌ Forget to factor in ALL monthly costs
❌ Waive important contingencies to win a bidding war
❌ Forget to do a final walkthrough before closing 
❌ Wire money without verbal confirmation of account details (wire fraud is real!)

1. ☐ Review this guide thoroughly
2. ☐ Start gathering financial documents
3. ☐ Research neighborhoods and create wish list
4. ☐ Schedule interviews with 2-3 realtors

1. ☐ Choose your realtor
2. ☐ Interview 2-3 mortgage lenders
3. ☐ Get pre-approved for a mortgage
4. ☐ Determine your comfortable budget
5. ☐ Begin house hunting!