3 Things Every First-Time Home Buyer in Grand Rapids Should Know

Buying your first home—or your first home in a long time—can feel overwhelming. There’s a lot of information out there, and not all of it is equally helpful (or accurate).

After working with many first-time buyers in the Grand Rapids area, I’ve noticed the same few issues come up again and again. These aren’t things buyers don’t care about—they’re things most people simply aren’t told early enough.

Here are three fundamentals I believe every buyer should understand before starting their home search.

1. Where You Find a Home Matters More Than You Think

Most buyers begin their search on popular third-party websites. While those sites can be helpful for browsing, they are not the most accurate source of information.

The most reliable, real-time home data comes from the Multiple Listing Service (MLS). This is the database real estate agents use, and it’s where listings are updated first with accurate pricing, availability, photos, and status changes.

Third-party sites typically pull their information from the MLS, which means:

• There can be delays

• Homes may already be under contract or sold

• Some listings may not even be active or accurate

When you rely on your agent and the MLS, you reduce the risk of missing new listings or falling in love with a home that’s already gone.

2. Pre-Approval Is Not the Same as Pre-Qualification

This is one of the most common—and most important—misunderstandings I see.

A pre-qualification is a rough estimate. It’s usually based on unverified information and gives a general idea of what you might be able to afford.

A pre-approval, on the other hand, is a formal verification. A lender reviews your income, assets, and credit to determine what you’re actually approved for.

Why this matters:

• Sellers strongly prefer pre-approved buyers

• Your offer is taken more seriously

• You avoid surprises later in the process

In competitive markets like Grand Rapids, a pre-approval can be the difference between winning a home and missing out—even if your offer price is strong.

3. There’s More to Budgeting Than the Down Payment

Many buyers plan carefully for the down payment, but that’s only one piece of the puzzle. In reality, buyers typically need to plan for three separate cash buckets:

The Down Payment

This is the initial percentage of the purchase price paid upfront. Depending on the loan type, this can vary widely.

Closing Costs

These are the fees associated with finalizing the loan and purchase. They often include things like lender fees, appraisal costs, title insurance, and prepaid items. A common estimate is 2–5% of the loan amount.

Earnest Money Deposit (EMD)

This is a “good faith” deposit submitted with your offer. It shows the seller you’re serious and is typically applied toward your final costs at closing.

One of the biggest financial mistakes buyers make is budgeting for the down payment but not planning for the other two—especially when earnest money is due quickly after an offer is accepted.

Final Thoughts

This is the largest financial decision most people ever make—and I treat it that way.

My goal isn’t to rush anyone into buying a home. It’s to make sure you understand the process, avoid unnecessary stress, and make confident decisions based on accurate information.

If you’re a first-time home buyer in Grand Rapids—or buying your first home in a while—I’m always happy to help answer questions or talk through next steps.

Call or message me anytime. Even if you’re just gathering information, I’m here to help.