The Process of Buying Your First Home: The Money Talk

Buying your first home is exciting, emotional, and (let’s be honest) a little nerve-wracking. One minute you’re dreaming about backyard barbecues, and the next you’re Googling “what even is escrow?” at 11 p.m. with a cup of cold coffee in hand.

I’ve been there — and I’ve helped a lot of people through it too. The good news? Once you understand the process, it all starts to make sense. And with the right team on your side (and a great local lender who actually answers the phone), you’ll be unlocking the door to your new home before you know it.

Let’s walk through what really happens when you buy your first home — and how to plan for all those little costs along the way.

🏠 1. The Down Payment: Your First Big Step

When I bought my first home, I thought “down payment” meant you had to come up with 20% or you were out of luck. Spoiler: that’s not true.

These days, there are plenty of programs that allow first-time buyers to put down as little as 3%–5%. Some even go lower!

💡 Where can the money come from?

• Savings or investments
• A gift from family (yep, Mom and Dad can help — just be sure to document it)
• First-time buyer grants or local assistance programs
• Employer homebuying benefits
• In some cases, retirement accounts

When one of my clients learned she could combine a small down payment with a local assistance program, she cried at closing — happy tears, of course. It made her dream home possible years sooner than she thought.

👉 Pro tip: A bigger down payment can lower your monthly payment, but don’t drain your savings. You’ll want a cushion for moving costs and the “surprises” that come with homeownership (like discovering your new fridge has opinions about which shelf actually gets cold).

💵 2. Closing Costs: The “Other” Big Check

Just when you think you’ve saved enough, your lender says, “Now let’s talk about closing costs.” Cue the dramatic music!

Closing costs cover all the behind-the-scenes expenses that make your home purchase official — things like loan origination fees, title insurance, recording fees, property taxes, and prepaid insurance.

💰 Typical range: 2%–5% of your purchase price.

Who pays what?

• Buyer: Usually covers lender fees, title insurance, and inspection costs.
• Seller: Covers their agent’s commission, and sometimes contributes toward your closing costs (especially if negotiated).

I once had a buyer who joked that closing costs were like the “cover charge” for the biggest event of their life — their housewarming party. The good news is, you can plan for it ahead of time and sometimes negotiate help from the seller or lender credits.

🔍 3. The Home Inspection: Protecting Your Investment (and Your Peace of Mind)

The inspection might be the most nerve-wracking — and enlightening — part of the process. It’s your chance to learn what’s really going on behind the walls.

Cost: Around $300–$600, paid by the buyer.

I always tell my clients to attend the inspection if possible. I once had a buyer who showed up with a notebook and snacks — three hours later, she knew more about her HVAC system than some contractors I know!

The inspector will point out what needs fixing and what’s normal wear and tear. From there, you and your agent can decide whether to ask the seller for repairs or move forward as-is.

Buying your first home might feel like a crash course in adulthood, but remember — every step you take gets you closer to that front-door moment. Understanding your down payment, closing costs, and inspection gives you the confidence (and the calm) to keep moving forward.

You’ve got this — and you’re already miles ahead just by learning what to expect.

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You’ve learned the money side — now it’s time to bring it home (literally).

Coming up in Part 2: Sealing the Deal — Appraisals, Loans & Local Advantage.

We’ll unpack the final steps of buying your first home, from appraisals to closing day, so you can walk into your new front door with confidence.