What I Wish I Knew When I Bought My First Home (In NOVA)

Buying your first home is an exciting milestone, but looking back, there are several things I wish I had known before diving into homeownership. My experience taught me valuable lessons that I now share with clients to help them make more informed decisions. Here are some of the key takeaways from my first home purchase.

1. Understanding PMI (Private Mortgage Insurance)

When I purchased my first home, I didn’t have 20% saved for a down payment. As a result, I had to pay private mortgage insurance (PMI), which increased my monthly payment. At the time, I didn’t fully understand how PMI worked or that it could be removed once I built enough equity. Had I known, I might have planned differently to reach that threshold sooner.

2. The Importance of a Home Inspection

I was fortunate not to waive my home inspection, even though I didn’t fully understand the process. That decision turned out to be crucial because the inspector found mold in the basement, which had to be remediated before closing. Without that inspection, I could have ended up with a costly issue down the road.

3. Thinking Ahead About Schools

At the time of my purchase, I didn’t have children, so I didn’t give much thought to school districts. However, we did have a child, I found myself wishing I had chosen a home in a different school district. Thinking ahead about future needs—whether schools, commute times, or neighborhood amenities—is something I encourage all buyers to consider.

4. The Reality of Mortgage Transfers

One unexpected experience was how my mortgage was sold multiple times after closing. I found it frustrating to deal with different loan servicers and ultimately decided to refinance with a lender I preferred. Knowing that mortgage transfers are common would have helped me feel less caught off guard.

5. What FSBO Means

I didn’t understand what For Sale By Owner (FSBO) was when I was buying my first home. This is when a seller lists their home without an agent, which can lead to challenges in negotiation, legal paperwork, and due diligence. As a first-time buyer, I would have been unprepared to navigate an FSBO situation successfully.

6. Parking Matters—Especially in Northern Virginia

My home was fine in many respects, but I didn’t give enough consideration to parking. Living in Northern Virginia, where street parking can be a nightmare, I quickly realized the importance of having a driveway or dedicated parking space. I also wish I had thought about how easily guests could park since my wife and I love entertaining.

7. Buying in a Unique Market (2004)

I bought my first home during an unusual time in the real estate market. Lenders were using unconventional financial instruments, such as loans where borrowers only paid interest, assuming they could quickly build equity and sell. This approach was risky and ultimately contributed to the 2008 housing crash. Understanding these financial tools and their implications would have helped me feel more secure in my decisions.

8. The Truth About Industry Ethics

One surprising aspect of my home-buying journey was encountering professionals who were willing to bend the truth or push ethical boundaries to close deals. As a man of integrity, I couldn’t operate that way, and I lost some potential advantages because of my honesty. However, I believe that integrity always wins in the long run, and having a trusted guide would have helped me navigate these situations more confidently.

9. The Value of a Knowledgeable Guide

Perhaps the biggest lesson I learned was how valuable it would have been to have someone like the future me guiding me through the process. Buying a home is complex, and having an experienced, trustworthy real estate professional can make all the difference in avoiding costly mistakes and making informed choices.

If you’re buying your first home, take the time to educate yourself, ask questions, and work with someone who genuinely has your best interests at heart. I wish I had known these things back then, but now I can use my experiences to help others make smarter, more confident decisions.

If you have questions about how to afford living in Norther Virginia, check out my blog post.