3 Things Every First-Time Home Buyer Should Know

(1) You Don't Pay the Agent's Commission.*

So many buyers wonder, "Do I have to pay a real estate agent?" For some, the thought of having to shell out extra cash when they're already doing all the can to save for their down payment is enough to make them walk away from the entire process before they even get going. Many are surprised to find out that the answer is actually no! As long as the home is listed with the local Multiple Listing Service, the agent earns their commission from the seller.

(2) Focus on Your Monthly Mortgage Payment, Not the List Price.

Getting pre-approved for a mortgage is generally the first step you should take as a first-time home buyer. A common mistake that people often make is focusing on the price of the home instead of the monthly payment they'll be making. You may get approved for a $200,000 home, but this may not necessarily be what you can truly afford; pesky special assessments (or the lake thereof) can make a huge difference to the monthly payment. Changing interest rates can also affect what you'll pay per month. Think of the amount your mortgage lender suggests as a range.

(3) Take the Jump!

To steal a line from Nike®... Just Do It™! From agonizing over the down payment to finding the "perfect" home, there are a ton of moments during the process that are going to make you feel nervous. Know that it's natural. You're always going to wish you had more money in the bank, hope the home has a big yard, or want to be a little more sure what direction your life will be taking in the next 5-10 years. My advice? If you feel comfortable with the monthly payment, love the location and the "bones" of the house, and feel proud to make it your own, then take the leap and don't look back.

*As with anything, exceptions may apply. Once example is if the home is a For Sale By Owner. To be certain of what the payment struction will be, speak with your agent as soon as you begin working together to discuss payment/commission.

--------------- KIMBERLY VAN HAL | Good to Know® ---------------

Kimberly is a residential agent with Berkshire Hathaway HomeServices Premier Properties.

Since 1987, she's helped home buyers and sellers in the Fargo-Moorhead metro area achieve their real estate goals.

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