First-Time Buyers
First-Time Home Buyer Guide: From "Should I Buy?" to the Keys
Buying your first home happens in five stages: deciding whether owning fits your life, getting ready, getting the money right, finding and winning the right home, and owning it well.
We put the money before the house on purpose. Know your numbers before you fall for a listing. Each stage below links to the guides and episodes where we go deeper.
Stage 1 · Part I, The Case
Should you buy?
When, not if
Most households end up owning their home, so the real question is when. Owning isn't for everyone, but everyone who is in the right position in their life should consider it.
Time your life and leave the market alone. If your career, your relationship, your credit and your savings all line up, waiting for rates to drop is a bad decision. And once you buy, give it time. Don't wait to buy real estate. Buy real estate and wait.
“Trying to time the market is a fool's game. You don't have the ability to do it, Jeb and I don't have the ability to do it. It's looking at the big picture, looking at your life and making the decision when it's the right time for you.”
- Reasons to Buy a House: The Honest Case For It
- Reasons Not to Buy a House Yet: An Honest List
- Rent vs Buy: The Honest Decision Framework
- Renting Is Cheaper, So Why Buy a House? The Real Math
- Can You Time the Housing Market? An Honest Answer
- Waiting For Lower Mortgage Rates: The Real Cost
- Why a 2008-Style Housing Crash Will Never Happen Again (EP225)
Stage 2 · Part II, Know Your Why
Are you ready?
Readiness comes down to five honest questions. Do you know your three numbers, and are you comfortable with them? Will you have money left after closing? Can you stay put for the next five years? Could you sleep if your home's value dipped next year? And are you buying for your own reasons, or for someone else's?
A no to any of them doesn't mean you'll never own. It means not right now, and it tells you what to work on first.
“It is not a guarantee that you're setting yourself up for failure if you use every nickel on closing day. It is a guarantee that you're setting yourself up for stress.”
Free · About 2 minutes
Am I Ready to Buy?
Take the Am I Ready Quiz to see where you stand. You get a personalized 10-episode playlist and the Homebuyer Playbook.
Stage 3 · Part III, Borrow Smart
Borrow smart: the money
Get the money right before you shop. About half the work of buying a home happens up front, and when it's done well, almost everything after it is a formality, including writing the offer.
The idea
Know your three numbers
Your maximum qualification
The least important of the three, but it gives you a framework. If you're looking at homes around $400,000, it helps to know you could qualify for $450,000. Knowing that ceiling gives you a comfort level while you shop.
Your all-in monthly payment
At the price you'll actually pay: principal, interest, taxes, insurance, mortgage insurance, and HOA dues if there are any. You don't need it before you start looking, but you need to know it and be comfortable with it.
Your total cash to close
The down payment plus closing costs and the prepaids that set up your impound account, and every option for covering it, like a seller credit or a gift.
“You have to know them and you got to be comfortable with them.”
A real pre-approval hands you all three numbers, side by side for a couple of loan options. If yours came back as a single number after you sent a few pay stubs, it was a quick answer, not a full pre-approval. And if the house changes, the numbers change. Find a home at a higher price and run them again.
“Most of the stress in a home purchase doesn't come from the loan. It comes from uncertainty.”
Your numbers and budget
Credit
Down payment and cash
Loan programs
Pre-approval
Rates, quotes and locks
- How Credit Score Affects Your Mortgage Rate (LLPAs)
- How to Read a Loan Estimate (and Compare Lenders With It)
- How to Compare Mortgage Offers and Avoid the BS
- Mortgage Broker vs Bank: Where Big Box Lenders Fall Short
- Mortgage Rate Lock Explained: Costs, Float-Downs, Expiry
- Mortgage Rate Buydown Explained: Temporary vs Permanent
The Roadmap
Get your three numbers
The Roadmap starts with a Discovery Call with Josh's team, where you see your real numbers and options for your situation.
Stage 4 · Part IV, Buy Right
Buy right: the home
A protector, not a deal-closer
Choose an agent who protects you: someone you can trust, who will have the tough conversations and won't just tell you what you want to hear.
People buy emotionally and justify logically, so set your line in the sand, the price where you walk away, before you fall for a house. When the inspector finds problems, that's good news. You want to know what you're buying. And difficult closings are caused at the beginning, which is why the work you did in stage three pays off here.
“Having someone that you can trust that isn't just telling you what you want to hear, somebody that is willing to have tough conversations.”
Your team
What to buy
The offer
Stage 5 · Part V, Build Wealth
Build wealth: after the keys
Once you own, time does the work. You pay down principal and build equity as the home's value grows year over year.
The biggest payoff is getting rid of most of your housing cost. Don't pull equity out or refinance into a longer term, and you can reach retirement with no mortgage payment. Refinance only when you're clear on your goal, how much you'll save each month and what it costs to get there.
“Just focus on making the payment every month and live your life. Don't worry about the value tomorrow.”
Start with these episodes
Not sure where you stand?
Take the Am I Ready Quiz
About 2 minutes, free.
Ready for real numbers?
Build your Roadmap
Starts with a Discovery Call with Josh's team.