Three First-Time Homebuyer Tips
Purchasing your first home is a significant decision and an exciting milestone. Even though it can be intimidating at times, it has the potential to improve your life. If you’re thinking about buying your first home, you might be wondering what’s going on in the housing market right now, how much you’ll need to save, and where to begin.
Here are three things that can provide you with the information you need to confidently pursue your homeownership dream.
1. Consider All Possibilities When the number of available homes is low
There are far more buyers in the market today than there are available homes for sale. When this happens, it’s a good idea to do everything you can to broaden your options. This could imply broadening your search to include different types of housing. Consideration of condominiums (condos) and townhomes can be an excellent way for first-time buyers to broaden their options. Bankrate reports that:
“Townhomes are frequently less expensive than single-family homes of comparable size in the same location.”
Bankrate also states in another article:
“Buying a condo can be a great way to get started in homeownership without having to worry about the maintenance that comes with single-family homes and townhouses.”
Condos and townhomes are both excellent first-time homebuying options. When you purchase either one, you can begin to build equity, which increases your net worth and can fuel a future move.
2. Recognize that your down payment may be closer than you think.
Saving for a down payment may appear to be one of the most difficult challenges for first-time homebuyers, but this does not have to be the case. According to the National Association of Realtors (NAR):
“One of the most common misconceptions among homebuyers is the typical down payment and the amount required to enter homeownership.”
According to NAR data, the median down payment hasn’t risen above 20% since 2005. According to the NAR’s 2022 Home Buyers and Sellers Generational Trends Report (see graph below), the median down payment for recent homebuyers is as follows:
According to the data above, the median down payment for all homebuyers is only 13%. That is significantly lower than the common misconception of 20%, and it is even lower for younger buyers. This could imply that you don’t need to save as much for a down payment as you thought.
Many buyers can also benefit from down payment assistance programs. Not to mention, for qualified buyers, some loan options require as little as 3.5 percent (or even 0 percent) down. While putting down 20% has advantages, especially in today’s competitive market, be aware that you have options. Speak with a professional for more information on how much you may need to save and the assistance that is available.
3. Consult with a Reliable Real Estate Advisor Throughout the Process
Finally, no matter where you are in your homeownership journey, working with a real estate professional is the best way to ensure your success.
If you’re just getting started, they can assist you with the first steps, such as educating you on the process and connecting you with a reputable lender to get pre-approved. When you’re ready to start looking, a real estate agent can help you understand your local market and search for available homes. When the time comes to make an offer, they’ll be an expert advisor and negotiator who will help your offer stand out from the crowd.
In conclusion
Knowledge is essential for success in your home-buying journey. Knowing market trends, what you need for a down payment, and what options you have as a buyer today can provide you with the assurance you need to purchase a home. Let’s get in touch so you can have an expert on your side to help you navigate the home-buying process.
