Taking the leap into homeownership is a big moment,  and if you’re a first-time buyer, you probably have a ton of questions. Don’t worry;  you’re not alone.

At the Karen Austin Team, we work with first-time buyers in Lansing and surrounding areas every day, and we’ve seen it all, the stress, the excitement, the late-night Zillow scrolling. So today, we’re answering the top five questions first-time buyers ask us (and maybe some you haven’t even thought of yet).

Let’s break it down.

1. How much do I need for a down payment?

This is usually the first question we hear,  and the good news is: it’s probably less than you think.

While 20% is the traditional rule of thumb, many loan programs available in Michigan allow as little as 3–5% down, and some government-backed loans (like USDA and VA) offer 0% down payment options.

You may even qualify for first-time homebuyer assistance programs, which can help with down payments or closing costs.

2. What’s included in my monthly mortgage payment?

When you’re budgeting, it’s important to know what that monthly payment covers. A typical mortgage payment includes:

• Principal – the actual loan amount
• Interest – what you pay the lender for borrowing money
• Taxes – property taxes based on the local rate
• Insurance – homeowner’s insurance to protect your property

If you’re putting less than 20% down, you may also have PMI (Private Mortgage Insurance) included until you reach enough equity.

3. Do I really need a Realtor?

You might see online listings and think, “I can figure this out myself.” But here’s the truth: a professional Realtor is your biggest asset,  especially as a first-time buyer.

• We help you understand the market
• We guide you through inspections, appraisals, and negotiations
• We protect your best interests in a transaction

And here’s a bonus: in most cases, the seller pays your Realtor’s commission,  not you.

4. What kind of home is best for first-time buyers?

Every buyer is different, but many first-timers benefit from:

• Low-maintenance properties
• Energy-efficient upgrades (less strain on monthly bills!)
• Safe, walkable neighborhoods
• Room to grow, especially if life changes soon

Looking for a real example? Check out our listings on the homepage.

5. What’s the biggest mistake to avoid?

The #1 pitfall we see? Skipping pre-approval and shopping outside your budget.

It’s important to:

• Get pre-approved before house hunting
• Work with a Realtor who educates and informs
• Stay flexible and realistic about your must-haves

Your first home is just that, a first step. It doesn’t have to be your forever home, but it can absolutely help you start building financial stability.

Final Thoughts: You’re Closer Than You Think

Buying your first home can feel overwhelming, but with the right guidance, it’s totally doable, and incredibly rewarding. Whether you're still browsing or ready to tour, our team is here to help you take smart, confident steps forward.

Let’s Find Your First Home in Lansing