16 things to know before you buy your first home

Buying a home for the first time is, by almost every measure, the most complex financial transaction most people will ever undertake. It involves more paperwork, more professionals, more jargon, and more money than virtually any other purchase — and unlike buying a car or opening an investment account, the consequences of a misstep can follow you for decades.

The process is also longer than most people expect. From the moment you start getting serious about buying to the day you get your keys, six months to a year is a reasonable timeline. That's not because the mechanics are slow, though they can be. It's because real preparation takes time. Understanding your finances, building your credit, saving adequately, learning what's negotiable, and finding the right people to work with — none of that happens in a weekend.

What makes first-time buying particularly disorienting is that the process is not designed to be intuitive. Real estate is a fragmented industry with local customs, state-specific rules, and an ecosystem of professionals — agents, lenders, inspectors, title companies, attorneys in some states — who each play a different role and have different interests. No single person gives you the full picture. You are expected to assemble it yourself.

There's also a cultural mythology around homeownership that doesn't always serve buyers well. The idea that buying is always better than renting, that home values always go up, or that a house is primarily an investment rather than a place to live — these narratives shape expectations in ways that can lead to bad decisions. A home can be a genuinely good financial move. It can also be a financial strain that limits flexibility for years. Whether it's the right call depends entirely on your situation, your market, and your timeline.

This guide is designed to give first-time buyers the framework they actually need — not cheerleading, but substance. The 15 things that follow cover everything from credit and financing to what happens on closing day, with enough depth that you'll know not just what to do, but why.

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Before you look at a single listing, pull your credit reports and review them carefully. Your credit score — specifically your FICO score — is one of the most consequential numbers in the homebuying process. Lenders use it to decide whether to approve your loan, and at what interest rate. A difference of 50 points in your score can translate to thousands of dollars over the life of a mortgage.

You're entitled to a free credit report from each of the three major bureaus — Equifax, Experian, and TransUnion — once a year through AnnualCreditReport.com. Get all three. They don't always contain the same information. Errors on credit reports are not rare, and disputing them takes time. If you find a mistake — an account that isn't yours, a late payment that was actually on time, a collection account that should have dropped off — file a dispute immediately. Don't assume it will sort itself out.

The score cutoffs that matter most depend on what kind of loan you're applying for. Conventional loans typically require a minimum score around 620, though you'll get meaningfully better rates with a score in the 740s or above. FHA loans, which are backed by the Federal Housing Administration and require a lower down payment, have a minimum closer to 580 for their standard terms. Some lenders will work with lower scores, but the cost of borrowing goes up accordingly.

If your score needs work, there are a few levers that actually move it. The biggest factor is your credit utilization ratio — the percentage of your available revolving credit that you're using. Keeping that below 30% helps, and keeping it below 10% helps more. Paying down credit card balances is one of the fastest ways to see a score improvement. Length of credit history matters too, which is why you should avoid closing old accounts, even ones you don't use.

Late payments are the other major factor. A single missed payment can drop a score significantly, and that mark stays on your report for seven years. If you have a history of late payments, the damage fades over time, but it doesn't disappear quickly. The best thing you can do is make all future payments on time, consistently, for as long as possible before you apply.

Don't open new credit accounts in the months before applying for a mortgage. New accounts create hard inquiries, which temporarily reduce your score, and they shorten your average account age. Even if you're offered a great deal on a store card, pass on it. The savings are not worth complicating your mortgage application.

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Lenders use a concept called debt-to-income ratio, or DTI, to determine how much they'll approve you to borrow. It compares your monthly debt obligations to your gross monthly income. Most conventional lenders want to see a total DTI — meaning all your debts, including the proposed mortgage payment — of no more than 43%, though some programs allow higher.

Here's the problem: being approved for a certain loan amount does not mean you should take it. Lenders are assessing their risk, not your quality of life. A mortgage payment that consumes 43% of your gross income may technically qualify, but gross income is not what you take home. After taxes, retirement contributions, health insurance, and other deductions, your actual take-home pay is considerably lower. A payment that looked manageable on paper can become genuinely stressful in practice.

A more conservative guideline, one that financial planners often recommend, is that your total housing costs — mortgage principal and interest, property taxes, homeowners insurance, and any HOA fees — should not exceed 28% of your gross monthly income. This is sometimes called the front-end ratio. Staying within it gives you room to save, handle unexpected expenses, and absorb life changes like a job transition or a car repair.

Beyond the monthly payment, think about what homeownership actually costs once you move in. A general rule of thumb is to budget one percent of the home's value per year for maintenance and repairs. On a $400,000 home, that's $4,000 a year — roughly $333 per month — just to keep things running. That figure doesn't include upgrades you might want, nor does it account for the fact that older homes often require more work. Skimping on this mental math leads people to buy homes that are technically affordable but practically a stretch.

Run the numbers with your actual take-home pay, not your gross income. Include the maintenance estimate. Include your current non-housing debts. Add a buffer for savings. The number that results from that exercise is a more honest picture of what you can afford than whatever a lender's calculator tells you.

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The 20% down payment is not a rule. It's a benchmark that determines whether you'll need to pay private mortgage insurance, or PMI. If you put down less than 20% on a conventional loan, lenders require PMI, which is an additional monthly cost that protects the lender — not you — if you default. PMI typically costs between 0.5% and 1.5% of the loan amount per year, depending on your credit score and loan size.

There are loan programs specifically designed for buyers who don't have 20% saved. FHA loans allow down payments as low as 3.5% for buyers with qualifying credit scores. Conventional loans backed by Fannie Mae and Freddie Mac offer programs with down payments as low as 3%. VA loans, for eligible veterans and active-duty service members, and USDA loans, for buyers in certain rural areas, can require no down payment at all.

Each of these programs has different rules about credit minimums, loan limits, property eligibility, and insurance costs. FHA loans, for example, require mortgage insurance premiums for the life of the loan in most cases, which is a meaningful ongoing cost. Conventional loans with PMI allow you to cancel the insurance once you reach 20% equity. Understanding these distinctions helps you compare the true long-term cost of each option.

Beyond the loan type, a larger down payment means a smaller loan, which means less interest paid over time. It also means a lower monthly payment and a stronger negotiating position with sellers in competitive markets. A smaller down payment means you preserve more cash — which has its own value, especially given that moving and early homeownership tend to generate unexpected expenses.

There's no universally correct down payment size. It depends on your savings, your market, the loan product you qualify for, and how long you plan to stay in the home. What matters is that you go in with clear eyes about what each choice costs.

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Pre-qualification is a quick, informal estimate based on information you self-report — your income, assets, and debts. A lender or online tool runs the numbers and tells you roughly what you might borrow. It takes minutes and involves no verification. It is useful as a rough benchmark and essentially nothing more.

Pre-approval is a formal process. The lender pulls your credit, reviews documentation of your income and assets, and issues a letter stating they are conditionally willing to lend you a specific amount. It typically takes a few days to a week. A pre-approval letter carries real weight when you make an offer. Many sellers in competitive markets won't consider an offer without one, and some listing agents won't show you properties unless you have one in hand.

Pre-approval is not a guarantee. It's conditional on the property appraising at or above the sale price, and on your financial situation not changing materially before closing. If you lose your job, take on new debt, or make a large withdrawal from your savings after pre-approval, your lender can revisit the terms or pull the offer entirely.

When getting pre-approved, you can apply to multiple lenders within a short window — typically 14 to 45 days, depending on the credit scoring model — without each application counting as a separate hard inquiry on your credit. The bureaus recognize that rate shopping is a normal part of the process. Take advantage of this. Comparing offers from three or four lenders is worth the effort.

The pre-approval letter will state a maximum loan amount. That doesn't mean you need to buy at that ceiling. Many buyers find it useful to get pre-approved for the maximum they qualify for, then shop at a price point below that — both for financial comfort and to maintain leverage in negotiations. A letter that pre-approves you for more than your offer can actually signal to a seller that you have room to go higher.

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A 30-year fixed mortgage is the most common home loan in the U.S. It gives borrowers a stable monthly payment with an interest rate that doesn't change over the life of the loan. Predictability is the primary advantage. The primary disadvantage is that you pay a significant amount in interest over 30 years — especially in the early years, when the majority of each payment goes toward interest rather than principal.

This is how amortization works. A 30-year loan on $400,000 at a 7% interest rate produces a monthly principal-and-interest payment of roughly $2,660. Over the full 30 years, the total paid would be approximately $957,000 — more than twice the original loan amount. The interest paid over the life of the loan, in this example, exceeds $550,000. Understanding this math doesn't mean you shouldn't take a 30-year mortgage — it may well be the right choice — but it should be part of how you think about the decision.

A 15-year fixed mortgage carries a higher monthly payment but a lower interest rate and dramatically less total interest paid over time. The same $400,000 at a 6% rate on a 15-year term produces a monthly payment around $3,375 but cuts total interest paid to roughly $207,000 — a substantial difference. The tradeoff is a higher monthly obligation, which reduces financial flexibility.

Adjustable-rate mortgages, or ARMs, offer a lower initial rate that adjusts after a fixed period — typically five, seven, or 10 years. They can make sense for buyers who are confident they'll sell or refinance before the rate adjusts. They carry risk for buyers who stay longer than planned and face an upward rate adjustment in a high-rate environment.

Rate differences that seem small compound over time. On a $400,000 loan, the difference between a 6.5% and a 7% rate is roughly $130 per month — and over 30 years, that adds up to more than $46,000 in additional interest. This is why shopping multiple lenders and negotiating your rate matters.

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The down payment is the number most buyers focus on when saving for a home. Closing costs are the one that tends to catch people off guard. These are fees paid at the time of closing to finalize the transaction, and they typically run between two and five percent of the loan amount — on a $400,000 purchase, that's $8,000 to $20,000 in addition to your down payment.

Closing costs include a range of charges. Origination fees go to the lender for processing the loan. Appraisal fees cover the cost of a professional appraisal to confirm the home's value. Title insurance protects against defects in the title — problems with prior ownership that could affect your right to the property. Escrow fees, attorney fees in states that require them, recording fees, and prepaid items like homeowners insurance and property tax deposits all add up.

Some of these costs are fixed. Others are negotiable or shoppable. You can often negotiate the lender's origination fees. You can shop for title insurance in many states. You cannot control the appraisal fee or recording fees.

When you apply for a mortgage, your lender is required by law to provide a Loan Estimate within three business days. This document gives you an itemized breakdown of your projected closing costs. Review it carefully. If any line items are unclear, ask for an explanation. The final closing costs should be close to the estimate, and you'll receive a Closing Disclosure at least three business days before closing with the final numbers.

It's also possible to negotiate seller concessions — a credit from the seller toward your closing costs. This is more common in slower markets where sellers are motivated. In competitive markets, asking for concessions can make your offer less appealing. Whether to ask depends on conditions in your specific market.

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A home inspection is a professional, visual examination of the physical condition of a property. An inspector examines the structure, roof, foundation, plumbing, electrical systems, HVAC, and other components, then produces a written report of what they found. Inspections typically cost a few hundred dollars and take two to four hours for an average-sized home.

Waiving the inspection is a tactic some buyers use in competitive markets to make their offer more attractive to sellers. In a market where sellers receive multiple offers, agreeing to skip the inspection removes a potential contingency that could complicate the deal. It's a significant risk. An inspection that reveals a failing HVAC system, evidence of water intrusion, a deteriorating roof, or a foundation issue can change whether you want to buy the property at all — or at least at the agreed price.

There's a version of this that threads the needle: an "inspection for information only" contingency, where the buyer agrees not to request repairs based on the inspection but retains the right to walk away if the findings are severe enough. This can satisfy a seller's desire for a cleaner offer while still protecting you from catastrophic surprises.

Even a clean inspection report rarely means the home is problem-free. Inspectors can only examine what's visible. They don't open walls, scope sewer lines, or test for radon unless you've hired a specialist. If the inspector flags concerns about the sewer or drainage, pay for a sewer scope. If the home is older, consider a radon test. If there's any indication of water in the basement, push for more investigation.

Read the full inspection report, not just the summary. The inspector's job is to be thorough, which means the report will contain a mix of serious issues and minor maintenance notes. Focus your attention on items that affect safety, structural integrity, or systems with a high replacement cost — roof, HVAC, foundation, electrical panel. Cosmetic issues matter less.

After the inspection, you can negotiate. Request repairs, ask for a price reduction, or request a credit at closing to cover the cost of addressing problems yourself. What's reasonable to ask for depends on the severity of the findings and the state of the market.

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Property taxes are one of the largest recurring costs of homeownership, and they vary more than most buyers realize — not just by state, but by county, city, and sometimes school district. Two homes with the same purchase price in different locations can carry dramatically different annual tax bills.

Property tax rates are expressed as a percentage of the assessed value of a home, which is not always the same as the market value. Assessment methodologies vary by jurisdiction. In some places, homes are reassessed at close to market value frequently. In others, assessments are infrequent, and long-time owners may pay taxes on values well below what their home would sell for. When you buy, the assessment may be reset to your purchase price — which can mean a significant increase in the tax bill compared to what the previous owner paid.

New buyers sometimes look at the seller's current tax bill and assume it represents what they'll pay. It doesn't, necessarily. Ask a local real estate agent or attorney how assessments work in the specific jurisdiction you're buying in, and whether a purchase typically triggers a reassessment.

The tax rate itself is determined by local governments — city councils, county boards, school boards — and can change over time. It's worth looking at the historical trend in the areas you're considering. A low current rate in a place with rising service costs and underfunded pensions may not stay low.

When your lender sets up your mortgage, they'll likely require an escrow account for property taxes and homeowners insurance. Each month, a portion of your mortgage payment goes into escrow, and the lender pays the tax and insurance bills when they're due. This is convenient but means your effective monthly payment can change annually when the lender recalculates the escrow requirement. An unexpected increase in your property tax assessment can result in a higher monthly payment the following year.

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Lenders require homeowners insurance as a condition of the mortgage. You must have a policy in place before closing. The policy protects both you and the lender if the home is damaged or destroyed — it covers the structure and, in most cases, your personal property inside it. It also includes liability coverage if someone is injured on your property.

Basic homeowners insurance does not cover everything. Flood damage is the most commonly misunderstood exclusion. Standard policies exclude flood from their coverage. If your home is in a federally designated flood zone, your lender will require you to carry separate flood insurance through the National Flood Insurance Program or a private insurer. If your home is near a flood zone but not technically in one, flood insurance is optional — but the risk may still be real. Flood designations can change, and flood damage is expensive.

Earthquake damage is similarly excluded from most standard policies and requires a separate policy, which is particularly relevant in California and parts of the Pacific Northwest.

In recent years, homeowners insurance costs have risen substantially in many parts of the country, driven by increased losses from wildfires, hurricanes, and other climate-related events. In California, Florida, and parts of Louisiana and Texas, some major insurers have reduced their coverage or exited the market entirely. In some high-risk areas, buyers are finding that coverage is expensive, limited, or available only through state-run insurers of last resort. Before you fall in love with a property in a high-risk area, research what insurance will actually cost and whether your preferred lender will accept it.

Shop for homeowners insurance before closing. Get at least three quotes. Make sure the coverage amount — specifically the dwelling coverage — is sufficient to rebuild the home at current construction costs, not just its market value.

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A house can be renovated. A neighborhood cannot — at least not quickly, and rarely by one buyer alone. The neighborhood you buy into affects your quality of life daily, your commute, your children's schools if that's relevant, your home's future value, and your ability to sell it later. It deserves as much scrutiny as the property itself.

Visit at different times of day. A neighborhood that looks quiet on a Tuesday afternoon may be different on a Friday night. Drive the route to work during actual commute hours. Check what businesses are nearby — not just the attractive ones but the ones that generate noise, traffic, or odors at inconvenient hours.

Look at the condition of neighboring homes. The investment and maintenance habits of neighbors affect your property value. If most homes on the block are well-kept but one is visibly deteriorating, that's a nuisance. If most homes are deteriorating, that's a market signal.

Research the school district even if you don't have or plan to have children. School district quality is one of the most reliable predictors of residential property values, and it affects resale regardless of your personal circumstances.

Look at zoning maps for nearby parcels. A vacant lot next to the property might be zoned for residential use, which means another home like yours could be built there. Or it could be zoned for commercial or industrial use. Knowing this changes your understanding of what the neighborhood could look like in five to 10 years.

Check the crime statistics, but put them in context. Most police departments publish data online. Look at trends, not just current numbers. A neighborhood with improving crime trends may be a better long-term bet than one with stable but elevated rates.

Proximity to transit, walkability, access to parks, and other quality-of-life factors are easier to evaluate when you've spent time in the neighborhood rather than just looked at it on a map.

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When you apply for a mortgage, the lender orders an independent appraisal of the property. An appraiser — a licensed professional — examines the home and compares it to recent sales of similar properties in the area to arrive at an estimate of market value. The lender uses this number to determine how much they'll actually lend you.

Here's why it matters: the lender will lend against the appraised value or the purchase price, whichever is lower. If you've agreed to pay $420,000 for a home but it appraises at $400,000, the lender will base the loan on $400,000. You'd need to cover the $20,000 gap out of pocket, renegotiate the price with the seller, or walk away — assuming your contract includes an appraisal contingency.

Appraisal contingencies allow buyers to exit the contract or renegotiate if the appraisal comes in below the purchase price. In competitive markets, buyers sometimes waive the appraisal contingency to strengthen their offer. This is a significant financial risk. If you waive it and the home appraises low, you're committed to making up the difference yourself.

Appraisals are not infallible. They reflect the appraiser's professional judgment based on available comparable sales. In fast-moving markets, where prices are changing quickly, comparable sales data may lag behind current conditions. A low appraisal in a rapidly appreciating market is not necessarily proof that you're overpaying — but it does require a decision about how to proceed.

If your appraisal comes in low and you believe it's inaccurate, you can formally contest it. To do so, you need to provide the appraiser with evidence of comparable sales that support a higher value — typically with the help of your real estate agent. The appraiser has the option to revise or maintain their assessment. Not all appeals succeed.

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In a standard real estate transaction, both the buyer's agent and the seller's agent are paid by commission — a percentage of the sale price, traditionally split between the two sides. Historically, this was paid by the seller from the proceeds of the sale, but recent changes to industry practice following a major legal settlement in 2024 have shifted how commissions are disclosed and negotiated.

Under new rules, buyer's agents must have a written agreement with buyers that specifies how they'll be compensated before they show homes. This agreement should spell out the commission amount or rate, and whether the buyer is responsible for paying any portion if the seller doesn't offer a buyer's agent commission. Reading and understanding this agreement before you sign it is important.

The commission structure creates an incentive worth being aware of. An agent who earns a percentage of the purchase price has a financial incentive to see a deal close, and to see it close at a higher price. That doesn't mean your agent is working against you — most aren't — but it does mean you shouldn't rely solely on your agent's enthusiasm for a property as validation that it's priced fairly or structurally sound.

Ask your agent direct questions. What is this home's value based on recent comparable sales? What are the weaknesses of this property? What would make you hesitant to advise a client to buy here? Good agents will answer these questions candidly. If an agent consistently steers conversations away from concerns, take note.

You are not obligated to use an agent at all, and some buyers choose to purchase directly, particularly in transactions where they know the seller. But for most first-time buyers navigating an unfamiliar process, a buyer's agent who genuinely understands the local market and is willing to advocate clearly provides real value — as long as you understand the structure you're working within.

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When you make an offer on a home, you're entering a legally binding purchase contract, not just a handshake on a number. Real estate purchase agreements are detailed documents that govern a lot more than the sale price. Understanding what's in the contract — and what you're agreeing to — matters.

The contract typically includes the purchase price and financing terms, the closing date, what items are included in the sale (appliances, fixtures, window treatments), which contingencies apply, how the earnest money deposit is handled, and what happens if either party backs out.

Contingencies are the clauses that allow you to exit the contract under specific conditions without losing your earnest money. The three most common are the financing contingency, which protects you if your loan falls through; the appraisal contingency, which protects you if the home appraises below the purchase price; and the inspection contingency, which gives you the right to exit based on what the inspection reveals. Waiving contingencies is sometimes done to make an offer more competitive, but each waiver represents a real risk.

Earnest money is the deposit you put down when an offer is accepted — typically one to three percent of the purchase price. It signals that you're serious and compensates the seller for taking the home off the market while the transaction is in process. If you back out of the deal for a reason not protected by a contingency, you can lose this deposit.

The closing date is negotiable and matters to both sides. Sellers sometimes need flexibility — time to find a new place, or a quick close if they're financially motivated. Aligning with what the seller needs on the closing timeline can make your offer more attractive at no financial cost to you. Your agent should find out what matters most to the seller before you submit.

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Homeowners associations are common in condominiums, townhouses, and many planned communities. If the home you're buying is part of an HOA, you'll pay monthly dues and be subject to the association's rules, which can govern everything from exterior paint colors to whether you can rent the unit, park a camper in the driveway, or keep certain pets.

HOA fees vary widely — from under $100 per month in smaller communities to several hundred dollars in buildings with amenities like pools, gyms, concierges, and elevators. These fees cover shared expenses: maintenance of common areas, landscaping, building insurance for condo structures, and sometimes utilities like water and trash. Factor HOA fees into your monthly housing budget before you fall in love with a unit. A $350,000 condo with $600 monthly HOA fees has a higher effective carrying cost than the purchase price suggests.

Before closing on any HOA property, review the HOA's financial documents. The disclosure package typically includes the association's budget, reserve fund balance, meeting minutes, and governing documents — the CC&Rs, bylaws, and rules. The reserve fund is the money the HOA has set aside for major future repairs: roofing, parking lots, elevators, pool resurfacing. A reserve fund that's significantly underfunded relative to anticipated expenses is a red flag.

If the reserves are low and a large repair is needed, the association can levy a special assessment — an additional charge to all owners to cover costs the reserves can't handle. Special assessments can run from a few hundred to several thousand dollars. Review the meeting minutes for any discussion of upcoming assessments or deferred maintenance.

Know that HOA rules are enforceable. Violations can result in fines. Some associations are loosely managed; others enforce their rules strictly. If the rules feel restrictive to you, that's important information.

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Closing — also called settlement — is the final step in the transaction. It's when you sign the documents that transfer ownership, pay the remaining costs, and receive the keys. In many states, closings take place in person at a title company or attorney's office. Some states allow remote or hybrid closings. The process typically takes one to two hours.

Several days before closing, you'll receive the Closing Disclosure — a five-page document that itemizes every cost associated with the transaction. Compare it carefully to the Loan Estimate you received when you applied. The numbers should be close, and some categories are capped by law from increasing beyond what was estimated. If you see a significant discrepancy, raise it with your lender immediately. Do not wait until the closing table to review this document.

You'll also do a final walkthrough of the property, typically within 24 hours before closing. This is your last chance to verify that the home is in the condition agreed upon — that any negotiated repairs have been completed, that all agreed-upon items are still present, and that the home is clean and undamaged. If something is wrong at the walkthrough, you have options — delaying closing, negotiating a credit, or requiring the issue to be resolved — but the leverage is much greater before you've signed.

At closing, you'll need a cashier's check or wire transfer for the remaining funds: your down payment plus closing costs, minus the earnest money already deposited. Personal checks are not accepted. Wire fraud targeting real estate closings is a genuine and documented problem. Before wiring money, verify the wire instructions by calling the title company or attorney directly using a phone number you independently look up — not one provided in an email. Wire fraud often involves attackers intercepting email communications and substituting fraudulent account details.

After closing, keep all your documentation. Your loan documents, the deed, the title policy, and the closing disclosure are important records that you may need for tax purposes or future transactions.

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The moment you get the keys, the focus tends to shift to furniture, paint colors, and unpacking. Those things matter, but they can overshadow a set of tasks that are more consequential for your financial and physical security.

The first thing to do in a new home is change the locks. The seller handed over keys at closing, but you have no way of knowing how many copies exist — previous owners, contractors, neighbors, and others may have had access. Rekeying or replacing locks is inexpensive and takes less than an hour. Do it before your first night.

Locate your main water shutoff, electrical panel, and gas shutoff. In an emergency — a burst pipe, an electrical fault, a gas smell — you need to act quickly. Walking through your home with this in mind, before anything goes wrong, is basic preparedness. Know where your circuit breakers are and which circuit controls which part of the house.

Review your homeowners insurance policy with fresh eyes now that you own the property rather than having bought it in the abstract. Make sure your dwelling coverage is adequate for rebuilding costs in your area, which have risen substantially in recent years due to construction cost inflation. Document your belongings — photos and videos stored off-site or in the cloud — so you have a record if you ever need to file a claim.

Start the maintenance calendar that will keep your home operating well. Furnace filters need changing regularly. Gutters need clearing at least twice a year. The HVAC system should be serviced annually. A home that's maintained consistently costs less to repair over time than one that's neglected and then fixed in crises.

Set aside money every month for repairs and improvements. Even a modest amount — $200 or $300 a month — accumulates into a buffer that lets you handle problems without going into debt or delaying necessary work. The homeowners who feel the most financial stress are often those who bought at the top of their budget and have nothing left for the inevitable surprises that come with owning a physical structure.

The transition from renter to owner is a real one. You're responsible for everything now. That responsibility, managed well, is one of the more stable and grounding things a person can build into their financial life.