Two recently married friends had barely unpacked the bags from their honeymoon trip when they were ankle deep in the throes of home shopping. There are things that people don’t tell first-time homebuyers, things that save money but common sense stuff too. For starters, no one tells a first-time home buyer that the home they think is the home of their dreams might slip from their grasp due to a higher bid from a cash buyer.

The lesson is not to get attached to every property you see. My friends are about to close escrow on a home just a few miles away, so in the end you do find the right home for you. You’ll learn a whole lot more of these little lessons during the buying process, but I’ll try to save you some first time blues.

Foreclosure Does Not Mean “Deal”

It could be conditioning, but there is a misguided connection between the word’s “foreclosure” and “deal.” It’s true that you can find foreclosures that are offered below market value, in an area you may want to live in. There are a lot of variables in that statement that should raise flags about the viability of foreclosures as a good buy. Basically, if the property meets your standards you should buy it. First-time homebuyers also have other options to save money on a home purchase that should be enough to enable you to shop for the home you want.

Saving more of your income as a down payment and cleaning up your credit will help you more.

Pre-Approval is a Must

According to Boston Pads, a leading authority on rentals and relocation, the biggest asset you have on your side is a pre-approval. If you need to relocate to another city, pre-approval will help you shop for properties without hassle. You may not be able to make a serious offer without pre-approval either, as the first question out of an agent’s mouth is usually about how much you’re approved for.

Talk to your bank about getting pre-qualified and pre-approved for a loan. It will help you negotiate for rates at closing time, and know exactly how much to shop for.

Negotiate over Fixing Costs

DIY is always an option to improve your home, but you will need contractors for the important labor like air conditioning and electrical. Aside from negotiations during the purchase process, you can work directly with contractors to get deals. You might not have been able to knock a new paint job off the cost of the house, but make some comparison calls for estimates on the job.

Before you let someone in your home, take exact measurements and visit a hardware store. Talk to some of the regulars there (bring donuts or coffee if you really want to attract) and see what they offer as a baseline. Collect business cards, write down their offers and you might find a better deal.

Acquire a Trustworthy Agent

A real estate agent isn’t someone you hire on a whim. Your agent should be knowledgeable about your situation. Make sure your agent knows how to deal with Homepath and FHA loans and how to navigate the various state laws. Their cost is also part of the closing cost. You should not pay them for their time, but you may have to pay an administrative fee during the closing of escrow.

Sellers may pay for additional marketing to sell a home, but agents make most of their money on the sale of a home. Whenever possible, speak with previous clients to get a feel for the agent or review the National Association of Realtors website for lists of individuals with accolades in the field.

The Web is also a great resource for first time home buyers to shop for rates on home insurance and mortgages. Once you’re pre-approved, you’re free to shop. Don’t be discouraged if an offer isn’t accepted, the right home is waiting for you.