Tips for First-Time Home Buyers

I’ve worked with thousands of first-time homebuyers and the loan officers who serve them. What I’m seeing right now is a mindset shift, away from “revenge spending” to what I’d call “revenge saving with purpose.” Millennials and Gen Z aren’t just cutting back on lattes. They’re taking on “no-buy challenges,” cutting travel, skipping festivals, not out of frugality, but because they know what they’re up against. The median home price is over $400,000. Rent hikes, inflation, and lingering student loans have made saving not optional, but existential. The harsh realtity is that the real cost of buying a home isn’t just the down payment. It’s also closing costs, moving expenses, utility deposits, home maintenance, and higher insurance premiums. That’s where most first-time buyers get blindsided. But “revenge saving” can close that gap if it’s intentional. That means: Categorizing spending and building flexible budgets Automating deposits into a high-yield savings account Tracking credit and financial progress with real tools And most importantly, starting 12–24 months before they’re ready to apply That’s the mission behind the KeySteps, powered by FinLocker which lets homebuyers build financial fitness in real time, with budgeting, credit monitoring, and a homeownership readiness plan all in one place. As for what to do with the savings? High-yield savings accounts (HYSAs) are a smart move for near-term liquidity. But I’d avoid locking it in a CD or IRA unless the home purchase is several years out. Flexibility matters. Revenge saving works best when it’s paired with guidance. That’s why I tell every aspiring buyer: talk to a mortgage advisor before you’re “ready.” The best time to build your plan was a year ago. The second-best time is today. #VieauxPoint

These 7 red flags could cost you $100K+ in Bay Area real estate 🚨 Last month, I watched a tech executive walk away from what seemed like his "perfect" home in Palo Alto. He was ready to wire $50K over asking. Then our inspector found horizontal cracks in the foundation. What started as a $1.8M dream home became a $100K+ structural nightmare waiting to happen. In our overheated Bay Area market, I see buyers so focused on winning bidding wars that they end up ignoring the warning signs that could cost them more than their down payment! Here are the red flags that separate smart buyers from sorry ones: 1. No earthquake retrofitting (pre-1980 homes) Cost to fix: $15K-50K What buyers see: Liability waiting to happen Impact: Many won't even make offers on unreinforced properties 2. Located in newly designated fire zones Hidden cost: $8K+ annual insurance or complete unavailability Market impact: 15-20% value reduction in high-risk areas Reality check: Check @CAL FIRE maps before you fall in love 3. Unpermitted additions/ADUs Potential cost: $30K-80K to bring to code Risk: City can force removal Due diligence: Always verify permits for any additions 4. Horizontal foundation cracks Repair cost: $20K-100K depending on severity Red flag: Different from normal settling cracks Professional tip: Vertical cracks = settling. Horizontal = structural issues. 5. Shared driveways or access disputes Legal costs: $10K-50K to resolve Ongoing headache: Neighbor disputes that never end Research: Always verify property boundaries and easements 6. Flood zone changes Insurance impact: $2K-5K annually in new flood zones Market reality: Even "safe" areas are getting rezoned Due diligence: Check updated FEMA flood maps 7. Mello-Roos or special assessments Hidden cost: $200-800+ monthly for decades Surprise factor: Not always disclosed prominently Research: Ask specifically about all recurring fees The common thread? These issues aren't just expensive to fix. They make properties harder to sell later. Your dream home can become your financial nightmare if you don't know what to look for. What red flag have you encountered in Bay Area real estate? #bayarea #realestate #homebuying #realestateagent #california

Here’s where you get LEVERAGE as a first-time buyer: The Seller’s Motivation – 70-year-old owners don’t want 100 offers. They want one buyer they like, who can close, and let them retire in peace. Certainty of Close – You show up prepared. With pre-approved SBA lenders, an investor network, and a structured offer. That’s leverage. Understanding the Business Better Than the Seller – You read their P&L and spot things they haven’t even optimized. That’s leverage. Creative Deal Structuring – You don’t need to pay top dollar. You need to create a win-win. Earn-outs, seller notes, SBA loans. That’s leverage.

Always have your financing ready before you start home shopping. Here's why: Recently, a buyer toured one of my listings twice. Her agent said she wanted to make an offer once her financing was secured. She was planning to work with her parents to submit a cash offer. A few days later, I received an offer from a different buyer. Buyer #1 then scrambled to submit her offer. Her parents were delayed meeting their financial advisor. She got a pre-qualification letter (not a pre-approval) from a national mortgage company just two hours before submitting her offer (think 1-800-mortgage). Meanwhile, Buyer #2 had full underwriting from a local lender I knew. Now, we had a multiple offer situation. Both buyers resubmitted stronger offers. Buyer #1 offered a higher price. Buyer #2 was close in price and could close quicker. In this market, finding the right buyer who gives confidence the deal will close is crucial. My sellers chose buyer #2 who had a strong local lender who had already done the work required to close quickly. Buyer #1 lost the house because her finances weren't in order. Not only that, she would have paid more had she won due to her delay in obtaining financing. Buyers, here are your takeaways: 1. Always have your financing ready before shopping. 2. I strongly recommend working with a local lender who understands your market and who just may know the seller's agent.

In case you haven't noticed, there's been a slight shift in the housing market recently. Yes, inventory is still at a record low, and yes, prices still remain high because of it. But, according to data from NAR, there are more homes on the market now than before 2019 nationally (pre-pandemic). And this is significant, for buyers are able to choose a bit more than they could before. Your home, Mr/Ms seller, may not be the only choice in the neighborhood, and therefore, buyers may start to ask for, or “negotiate” for, different things. While this is certainly a welcomed change for buyers, sellers may not be happy. So with that, let’s take a look at that data and find out what things buyers are trying to negotiate, and how sellers can be ready! Ok, first things first. What exactly might a buyer ask for? Let’s take a look: 1. Sale Price - Certainly the most obvious, and the one being asked for more than ever today. Buyers and their agents are far more savvy now than ever before, and they know the comps. Sellers need to be realistic in their sale price or they may have to adjust. Buyers are not looking to pay 100k over ask anymore. 2. Home Repairs - Yes, home inspections are back to some degree. And truthfully, this is a good thing! Home inspections can protect both buyers and sellers from future litigation. Buyers today know they are within their rights to once again ask for fixes to be made. It is up to the seller and the agent as to whether he/she will agree (we always recommend a credit at close instead of a fix, for the record). 3. Closing Costs - Most closing costs run between 2-5% (not including commissions), of the home purchase price, and buyers may choose to ask for some liquidity here. A credit at close can be a good way to help the buyer gain some money at the time of sale, and still get the seller what they want for a net. 4. Home Warranties - These became popular when folks were waiving their inspections. Home warranties can protect the new owner for up to a year if a major system fails, giving him/her some much needed peace of mind. These usually cost a seller between $800-$1200. 5. Closing Date - Buyers may ask for either a faster close, or an extension to the close. Said window is now fully back on the table, as are all the other dates in the offer. So, what’s the bottom line? More inventory brings more choice for the buyers. And this choice gives buyers more power to negotiate during the home buying process. This might not be something sellers are used to, given the state of the market for the past five years. Be ready to listen to your Realtor, and strategize about the best way to find a compromise, and keep the home sale process moving forward. As always, good luck out there folks, stay safe and be kind! #negotiations #homeselling #homebuying

Unpopular opinion: Stop presenting "buyer love letters" with offers on properties. Spring market heats up, increasing competition and multiple offers. A "buyer love letter" will not help your offer stand out. It will put the home seller at risk of violating fair housing laws. Instead, do this. Here's one of my creative strategies for making our clients' offers stand out. End your offer's purchase price with a unique number that's special to the seller. Look around the property for clues. -the property address ('123' Main St) -graduation years (Class of '1999') -their wedding anniversary date -kid sports jersey numbers This helped my clients win a home that had 27 offers. I noticed the seller's kid played baseball. There were high school and college jerseys framed on the walls #3. So we presented our purchase price as $1,513,303 and explained why. 1330 for their address and 3 for the jersey number. The sellers shared their emotional ties to baseball, which played a big part in their lives, making their move a poignant chapter closure. My clients got the house. Creativity with intent and purpose will make them fall in love with your offer, not a cheesy letter.

“How much house can I afford?” - Wrong question. Try this instead: “What’s the right home budget for my ideal life?” Those are two very different paths. One is about maxing out a mortgage based on lender math. The other is about aligning a major decision with your values, goals, and desired lifestyle. Here’s a simple framework we walk clients through when thinking about home affordability: 👉 Step 1: Zoom out - What do you want life to look like after buying a home? Let’s put some framework around this. 👉 Step 2: How much does it cost to live your current lifestyle? Where is money going and how is this aligned with your values? 👉 Step 3: Estimate ongoing housing costs at different levels of a home budget - Mortgage, insurance, taxes, repairs, furniture, etc. and determine how these fit into your current spending 👉 Step 4: Calculate your projected savings rate and the potential impact to financial independence. How do you feel about it? If you’re saving < 20% of your after-tax income, then either income needs to increase or spending needs to decrease. This is where powerful conversations happen - would this home limit your other goals — like travel, flexibility, kids’ education, or work optionality? Fully understanding these tradeoffs are crucial to ensure your home purchase fits comfortable into your ideal life. Buying a home isn’t just a numbers game — it’s a life design decision. Make sure your future lifestyle fits inside those four walls.

The data shocked me: Home prices have quadrupled since the 1990s. That $100K starter home? Now $400K. I've guided dozens of clients through this reality in the past few years. The biggest challenges they face: • Down payments requiring 4× more savings • Interest rates doubling monthly payments • Property taxes climbing with valuations • Maintenance costs rising with inflation    When I review their home buying preparation, I hear: "We're just hoping it works out somehow." Hope isn't a strategy. Here's what successful homebuyers are doing instead: 1) Building strategic cash reserves "We maintain 6-12 months of expenses SEPARATE from our down payment" 2) Taking a proactive credit approach "We started credit optimization a year before mortgage shopping" 3)  Running comprehensive cost projections "We've calculated ALL expenses: mortgage, taxes, insurance, maintenance, and future repairs" 4) Remaining flexible on timing and location "We're considering value opportunities rather than emotional decisions" The reality? Your ideal approach depends on: • YOUR income stability • YOUR future goals • YOUR personal risk tolerance    This evolves through different life stages. The stakes are enormous. Without proper planning, even high earners can find themselves house-poor for decades. My clients who follow a strategic home buying plan typically save $50K+ over their loan term while maintaining financial security. Don't start with Zillow. Start with strategy.

How to buy a house: ❌ What's the most I can get approved for? This will lead to: - Living paycheck to paycheck - Take away financial flexibility - Prevent you meeting your financial goals - Lots of stress - Take away financial peace of mind ✅ Let me calculate what I can actually afford. Here are some questions to get you started: - What are my current fixed expenses? - What are my current variable expenses? - Do I have a cash flow system? - How much current debt do I have? - What are my long-term financial goals? - Will the new payment take away from those goals? - How long will I stay at this house? - How much will property taxes be? - Will my emergency fund capture new mortgage payment? - Can I afford $2K to $4K in random maintenance items a year? - Do I understand how much interest the loan will cost me the first 5 yrs? - Do I have money to furnish the house? - How much income will be absorbed by the new mortgage payment? Be careful not to over extend yourself. The lender will approve you for more than you can truly afford. Being house poor sucks. It takes away from your financial peace of mind. It causes money stress. It will cost you dearly in opportunity costs and trade offs. (look up Compounding Interest) It is one of the biggest financial decisions of your life. One that is connected to every other financial decision. It's all intertwined. Be extremely intentional. Buying a house has an emotional aspect to it. I get that. But protect yourself from money stress. It is also good to listen to what the spreadsheet says. #knowyourkoyns

So you’re thinking about buying a place—exciting! But before you get too caught up in scrolling real estate websites, let me give you one piece of advice: don’t just focus on the price tag. A lot of first-time buyers look at the purchase price and their mortgage payment but forget about all the other costs that come with homeownership. Here’s what I wish more people knew: ☕ Property taxes can vary a ton depending on where you buy. That “affordable” house might come with crazy-high taxes. ☕ Homeowners insurance is getting expensive, especially in certain areas. Get quotes early. ☕ Maintenance is real. A good rule of thumb? Budget at least 1% of the home’s value per year for repairs. ☕ HOA fees can add a few hundred bucks to your monthly payment, so don’t overlook them. Here’s how to avoid getting blindsided: ✔️ Look beyond the mortgage—calculate all the monthly costs. ✔️ Ask about past utility bills, maintenance costs, and insurance rates. ✔️ Plan for long-term stuff like replacing the roof or HVAC. Bottom line: A house isn’t just a purchase—it’s a financial commitment. Make sure you know what you’re getting into before you sign on the dotted line. #realestate #homeownership