Buying a Home this Summer? Here are Tips to Get Started

Published: August 7, 2025


Buying a home is a large financial investment, so it is key to do your research before diving into the market. DRE is here to provide you with tips and resources before you start your search.

First Things to Consider

Before you start looking, take the time to consider your priorities:

  • Do you have long-term plans? Do you plan to stay for five or more years? Does the home meet your future needs (i.e., growing family, remote work, aging in place)?

  • Consider what type of house will serve your needs (i.e., single family home, condo, duplex, move-in ready or fixer upper, etc.)

  • Consider what neighborhoods you'd like to live in (i.e., distance to work or school, safety, schools, amenities or future development plans)

  • Find out if housing inventory is rising, falling, or holding steady

  • Find out the average length of time houses remain on the market in the area you want to buy

  • Create a list of "must-haves" and "nice-to-haves" for yourself and your real estate agent

  • Talk with trusted friends or family members who have purchased a home about their experience

Figure Out What You Can Afford

Before looking for a home, be realistic about what you can afford and how much financing you can secure. The cost to purchase a home includes not only the monthly mortgage payments, but the down payment, closing costs, insurance, taxes, repairs, upgrades (including energy efficiency upgrades, fire hardening, and drought tolerant landscaping), and other expenses. Also, keep in mind ongoing costs, like utilities, taxes, homeowner association dues (HOA), possible renovations and maintenance.

Typically, you'll need 5 percent to 20 percent of the purchase price for a down payment, depending on your financing arrangements, and an additional 3 percent to 7 percent for closing costs. Please note: if you put less than 20 percent down for a downpayment, you may be required to have an impound account and/or pay private mortgage insurance (PMI).

Focus on the monthly payment you can afford in the context of other expenses, not the maximum loan amount you may qualify for. Just because you qualify for a loan amount doesn't mean you need to spend it. Buying more home than you can afford can put you at higher risk of foreclosure if your financial situation changes.

Secure Financing

Compare lender rates and fees and consider getting pre-approved to make the buying process smoother. Lenders will look at your credit score/history, including the number of open accounts, payment history, and type of debt to establish your debt-to-income ratio (the amount of a loan you have the ability to repay)

Some lenders offer first-time homebuyer discounted rates and there are government programs to assist qualified first-time homebuyers.

Make sure you understand the loan's interest rate, terms of the loan, and monthly payment for principal and interest.

Be sure to understand the difference between a fixed rate mortgage and an adjustable rate mortgage. Fixed rate mortgages are set at a consistent interest rate over the period of the loan (typically 15 or 30 years). An adjustable rate mortgage offers a lower initial interest rate that later fluctuates with current market conditions, meaning that your mortgage payment will increase when interest rates increase or decrease when interest rates decrease. The specific terms for each type of mortgage varies, so take the time to understand the details.

Find a Real Estate Agent

Invest some time finding the right real estate agent and always check their license status on the DRE website or by calling DRE (877-373-4542). Keep in mind that this is a business relationship, not a personal one.

Find Your Home

When you begin your search for your home, keep in mind your list of priorities and what you can afford. Make sure your agent explains any homeowner association dues and special taxes and assessments, including solar systems. If a home you're interested in already has a solar system, ask your real estate agent about the financial arrangement you'd take on as the new owner.

Buying a home is both an emotional and financial decision, and an emotional response can lead to poor decision making and, often, paying more than you can afford. Take your time to weigh the pros and cons of each listing you tour before making a decision.

View more tips on the homebuying on our website: DRE First Time Home Buyers


 
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