Buying your first home is a huge milestone that provides long-term stability and the freedom to customize your living space any way you want. It’s also a significant financial decision. Now that the low interest rates seen during the pandemic are fading away, first-time buyers are realizing the value of buying a home and staying put.
But the trend of buying a temporary home to fix up and trade for a bigger home is fading fast. According to a Rocket Mortgage® survey, 34% of first-time home buyers want their first home to be their forever home. But you don’t have to settle for average. If you’re a first-time home buyer with specific preferences, here’s how to land your dream home on the first try.
Determine your must-haves
Pinpoint exactly what features you want your forever home to have. Maybe you want an open kitchen that blends into the living room, a jacuzzi tub, or a walk-in pantry. Perhaps you prefer vaulted ceilings or a master bedroom on the first level. You might even have preferences for a certain type of flooring material or huge windows that let in more light. Whatever it is that you feel will make your home ideal, document those features and keep them top of mind when searching for your home.
Once you’ve identified your must-haves, make a list of your nice-to-haves. These might be things like a pool, a kitchen island, and premium finishes. Nice-to-haves are things you like, but they won’t break your lifestyle. Stay flexible on these features – you probably won’t find a home that checks every box.
Know your budget before you start looking
It’s not enough to have your down payment. You also need to know how much you can spend on your home. Prices and interest rates have increased significantly since the pandemic, and it’s important to get up-to-date rates before you begin your search. You’ll also need to calculate what you can afford based on your income and debts. Lenders will examine your finances to determine how much you can borrow, and it might not match what you want.
Long-term mortgage rates are in the low-to-mid-6% range, which means higher monthly payments compared to the sub-3% era. A typical monthly mortgage today exceeds $3,000 when factoring in principal, interest, taxes, insurance, and mortgage insurance. You’ll also need to budget for your down payment. The median down payment in 2025 for first-time buyers was 10% – the highest since 1989.
Once you know where you stand financially, you can search for homes within your price range. It’s better to calculate your budget first than find a home you love but can’t afford.
Get pre-approved
Houses in desirable neighborhoods sell fast. Getting pre-approved for a mortgage will give you leverage. Sellers are more likely to negotiate with buyers who have solid financing. A full pre-approval requires strong documentation and underwriting review, and that’s worth something to sellers.
To prepare for pre-approval, gather your tax returns, pay stubs, and bank statements so you’ll have them ready when you find the right house. While you’re searching for your forever home, stay in touch with your lender in case anything changes. And avoid large purchases or changing jobs because that can jeopardize your mortgage approval.
Work with a real estate agent
When your goal is to snag your dream home on the first try, partnering with a real estate agent is crucial. It’s hard to buy a home on your own thanks to the complex requirements and subtle nuances involved in making a deal. A real estate pro will not only give you access to listings you may not ever find on your own, but they’ll negotiate the price and contract details on your behalf. A real estate agent will know the local market and will guide you through the complexities of deadlines and closing.
The right strategy will help you find your dream home
Finding your forever home doesn’t have to be difficult. If you put in the time and effort to document the features you need most, search within your budget, and get help from a real estate agent, you can transition from renting to owning your dream home on the first try.