Christine Gerbehy

What to Do Before You Buy a Home: A Guide for First-Time Homebuyers

by Christine Gerbehy

What to Do Before You Buy a Home…

Looking to buy a home is one of the biggest financial decisions you’ll ever make. Whether you’re a first-time homebuyer or looking to upgrade, prepping early in the game can save you time, money, and stress. Here I’ll outline some essential steps to take before buying a home, making sure you can feel ready to move ahead with confidence.

Assess Your Financial Health

Before diving into the homebuying process, HONESTLY evaluate your financial situation. A strong financial foundation is critical for getting a mortgage and maintaining homeownership.

Here’s how to start:

Check Your Credit Score: Your credit score impacts mortgage approval and interest rates. Obtain a free credit report from major bureaus (Equifax, Experian, TransUnion) and address any errors or delinquencies. Aim for a score of 620 or higher for conventional loans, though 740+ unlocks the best rates.

Calculate Your Budget: Use a home affordability calculator to determine how much house you can afford. You can find them on mortgage websites like Lending Tree. Then, factor in monthly income, debts, and expenses. The 28/36 rule is a good guideline: no more than 28% of gross income should go toward housing, and total debt shouldn’t exceed 36%.

Save for a Down Payment: Most loans require 3-20% of the home’s price as a down payment. For a $300,000 home, that’s $9,000-$60,000. Programs like FHA loans allow as little as 3.5% down, which is ideal for first-time buyers.

Build an Emergency Fund: Set aside 3-6 months of living expenses to cover unexpected repairs or job loss after closing.

Get Pre-Approved for a Mortgage: A mortgage pre-approval letter shows sellers you’re a serious buyer and clarifies your price range. Contact multiple lenders to compare interest rates, loan types (fixed vs. adjustable), and terms. They will ask you for documents like pay stubs, tax returns, and bank statements. Pre-approval strengthens your offer in competitive markets and streamlines the closing process.

Explore Loan Options: Research conventional, FHA, VA, or USDA loans based on eligibility. VA loans, for example, offer 0% down for qualifying veterans.

Understand Closing Costs: Budget 2-5% of the home’s price for fees like appraisals, title insurance, and lender charges.

Define Your Home Needs and Wants: You want to clarify what you need in a home to narrow your search. Create a list of must-haves (e.g., number of bedrooms, garage, location) and nice-to-haves (e.g., a backyard, updated kitchen). Let your agent know so that they can better help you to find what you’re looking for!

Consider:

Location: When looking to buy a home, make sure to think about things like your distance/drive to work, schools, public transit, or amenities. Be sure to research neighborhood safety, property taxes, and future development plans.

Home Type: Are you looking to buy a single-family home, condo, townhouse, or fixer-upper? Each has unique costs and maintenance requirements. Some homes will require special financing, such as manufactured homes, mobile homes, fixer uppers, etc..

Long-Term Plans: Will the home suit your needs in 5-10 years? Think about family growth or lifestyle changes that may affect you down the road.

Research the Real Estate Market: Understanding local market trends helps you make informed decisions. Is it a buyer’s or seller’s market? In a buyer’s market, you may have more leverage to negotiate; in a seller’s market, homes sell fast, often above asking price. You can use online tools like Zillow or Redfin to track home prices, inventory, and days on market.

Hire a Trusted Real Estate Agent: A knowledgeable real estate agent is your advocate, guiding you through negotiations, paperwork, inspections and closing. Interview multiple agents to find one with strong communication, local expertise, and a track record of success. Ask about their strategy for finding on-market and off-market properties and how they’ll represent your interests.

Start House Hunting Strategically: With your mortgage pre-approval and an agent in place, begin touring homes. Attend open houses and schedule private showings to compare properties. Take notes and photos or videos (with permission) to track details.

REMEMBER!:

Pay attention to:

Home Condition: Look for signs of wear, such as cracks, leaks, or outdated systems (HVAC, plumbing).

Resale Potential: Even if you plan to stay long-term, consider factors like school districts or transit access that boost future value.

Hidden Costs: Older homes may need repairs, while condos often have HOA fees that will cover various types of maintenance.

Plan for Home Inspections and Appraisals: Once you find the right home, protect your investment with due diligence:

Home Inspection: Hire a licensed inspector to evaluate the property’s structure, systems, and safety. Inspections cost $300-$500 but can uncover issues like mold or faulty wiring, giving you leverage to negotiate repairs or price reductions.

Appraisal: Lenders require an appraisal to confirm the home’s value matches the loan amount. If the appraisal is low, you may need to renegotiate or cover the difference. Be sure to ask your agent to explain this to you in detail. They will help you to navigate through this should it happen…

Prepare for Closing and Moving: Prepare to finalize your purchase:

Review Contracts and Mortgage Paperwork: Work with your agent and attorney (if applicable) to understand the purchase agreement and contingencies (e.g., financing, inspection).

Secure Homeowners Insurance: Lenders require insurance before closing. Shop for policies covering property damage, liability, and natural disasters relevant to your area. Don’t forget about flood insurance if you’re buying by the shore, beach or bay!

Plan Your Move: Book movers, transfer utilities, and update your address with banks, employers, and subscriptions, as well as the post office.

Final Thoughts..

Looking to buy a home is an exciting milestone, but preparation is key to a smooth experience. By assessing your finances, getting pre-approved, researching the market, and working with professionals, you’ll position yourself for success in today’s competitive real estate landscape. Start early, stay organized, and trust the process to find your dream home.

Ready to start your homebuying journey? Let me help you to turn YOUR homeownership dreams into reality! —

Christine Gerbehy

Coldwell Banker Argus Real Estate Northfield

1114 Tilton Rd Northfield, NJ 08225

Your Listing Expired, Now What?

How a Realtor Helps You Buy or Sell a Home

Wondering about Beachfront Home Insurance?

How a Realtor Helps You Buy or Sell a Home

by Christine Gerbehy

How a Realtor Helps You Buy or Sell a Home: Your Guide to a Smooth Real Estate Journey

A Realtor can help you buy or sell…

Why do you need a realtor? Well, navigating the real estate market can be a complex and overwhelming process. Whether you’re buying your dream home or selling a property, a professional realtor is your trusted partner. We guide you through every step of the home buying or selling process with expertise, market knowledge, and personalized service. In this blog post, we’ll take a look at how a realtor helps you achieve your real estate goals, ensuring a seamless and successful transaction.

Why Work with a Realtor?

A realtor is a licensed real estate professional who brings invaluable skills to the table. Whether you’re a first-time homebuyer, a seasoned investor, or a seller looking to maximize your property’s value, a realtor expertise in the housing market, negotiation, and local trends makes all the difference. Here’s how a realtor helps you buy or sell a home…

How a Realtor Helps You Buy a Home

1. Understanding Your Needs and Budget

A realtor starts by listening to your needs—whether it’s finding a family-friendly home in a top school district, a condo in a bustling urban area, or a fixer-upper for investment purposes. We help you define your budget, factoring in mortgage pre-approval, down payments, and closing costs, ensuring you focus on properties within your financial reach.

2. Expert Property Search

Realtors have access to the Multiple Listing Service (MLS), a comprehensive database of available properties, including exclusive listings not always found on public platforms like Zillow or Redfin. They filter homes based on your criteria—location, size, amenities, and price and send them right to your email. That way, you know the second a home either goes back on the market, drops in price OR hits the market! Think of it as having the inside edge—saving you time and effort. We also provide insights into local neighborhoods, market trends, and property values to help you make informed decisions.

3. Scheduling and Attending Showings

Your realtor coordinates home showings, arranging tours at your convenience. They accompany you to point out key features, potential red flags, and answer questions about the property. Their trained eye can spot issues like structural concerns or outdated systems, helping you avoid costly mistakes. Are there leaks? Is there mold? Are there problems with the foundation? We can point that out to you.

4. Negotiation Expertise

Once you find the perfect home, your realtor negotiates on your behalf to secure the best price and terms. They analyze comparable sales (comps) to ensure the offer aligns with market value and advocate for concessions, such as repairs or closing cost assistance, to protect your interests. We can tell you if a home is under-priced, OR over-priced.

5. Guiding You Through the Closing Process

The closing process involves appraisals, inspections, title searches, and mortgage finalization. A realtor coordinates with lenders, inspectors, and title companies to ensure all paperwork is completed accurately and on time. They also explain a number of other things so that you can feel confident every step of the way!

How a Realtor Helps You Sell a Home

1. Pricing Your Home Competitively

Setting the right listing price is critical to attracting buyers and maximizing your return. A realtor conducts a comparative market analysis (CMA) to evaluate your home’s value based on recent sales of similar properties in your area. They factor in local market conditions, home condition, and unique features to price your property competitively. Bu doing this, we can price your home for a fast, successful sale!

2. Marketing Your Property

A realtor creates a tailored marketing strategy to showcase your home to potential buyers. This includes professional photography, virtual tours, and staging advice to highlight your home’s best features. We list your property on the MLS, adding it to many real estate websites. Then, we send video to YouTube and social media, and we may even host open houses or private showings. We use many different ways to generate interest!

3. Navigating Offers and Negotiations

When offers start to come in, your realtor goes over each one, considering not just the price but also contingencies, financing, and closing timelines. We negotiate with buyers’ agents to lock in the best deal. Whether it’s a higher sale price or favorable terms, we ensure that your goals are met.

4. Managing the Sales Process

From accepting an offer to closing, a realtor oversees every detail. They coordinate inspections, appraisals, and repairs. We ensure compliance with local regulations. We also work with escrow and title companies to finalize the sale, keeping you informed and minimizing stress.

5. Local Market Expertise

Realtors have in-depth knowledge of local real estate markets, including trends in home prices, buyer demand, and neighborhood desirability. This expertise helps sellers position their home effectively. We help uyers find properties in up-and-coming areas with strong investment potential.

The Value of a Realtor’s Network and Experience

Realtors bring more to the table more than just market knowledge—they have a network of trusted professionals, including mortgage brokers, home inspectors, contractors, and attorneys, to streamline your transaction. Their experience in handling tough situations, like bidding wars or unexpected repairs. This ensures you avoid pitfalls and achieve a successful outcome.

Why You Shouldn’t Go It Alone

While some may consider buying or selling a home without a realtor to save on commission, the risks often outweigh the benefits. Without a realtor, you may miss out on market insights, overpay for a home, or undervalue your property. A realtor’s negotiation skills, industry connections, and understanding of legal requirements protect your financial interests and save you time.

Conclusion:

Partner with a Realtor for Success!

Whether you’re buying a home or selling a property, a realtor is your advocate in the real estate market. From finding the perfect home to securing the best sale price, their expertise, negotiation skills, and local knowledge make the process easier Ready to start your real estate journey? Contact me today to guide you toward your homeownership or selling goals!

Christine Gerbehy

Coldwell Banker Argus Real Estate Northfield

A Day in the Life of a Realtor…

Christine Gerbehy, Realtor Associate 2025