Three First-Time Homebuyer Tips
Purchasing your first house is a significant decision and a significant achievement. Even while it can be intimidating at times, it has the potential to improve your life. If you're thinking of buying your first house, you might be wondering what's going on in the housing market right now, how much money you'll need to put aside, and where to begin.
Here are three resources that can provide you with the information you need to pursue your dream of homeownership with confidence.
1. When the number of homes for sale is low, consider all options.
There are considerably more purchasers than properties available for sale in today's market. When that happens, you should do everything you can to broaden your possibilities. This could imply broadening your search to include different types of accommodation. Condominiums (condos) and townhomes can be an excellent method for first-time buyers to expand their options. Bankrate reports that:
“Townhomes often cost less than single-family homes of a similar size in the same location.”
Bankrate also mentions in another article:
“Buying a condo can be a great way to dive into homeownership without worrying about the upkeep 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 accumulating equity, which will enhance your net worth and allow you to make a future relocation.
2. Know that your down payment may be more accessible than you think.
Saving for a down payment can seem like one of the most difficult challenges for first-time homeowners, but it doesn't have to be. According to the National Association of Realtors (NAR),
“One of the biggest misconceptions among housing consumers is what the typical down payment is and what amount is needed to enter homeownership.”
According to NAR data, the median down payment hasn't exceeded 20% since 2005. According to the NAR's 2022 Home Buyers and Sellers Generational Trends Report (see graph below), the typical down payment for recent homeowners is broken down by age group:
According to the information above, the median down payment for all homebuyers is only 13%. That's far less than the popular estimate of 20%, and it's considerably lower for younger consumers. This could imply you don't need to save as much as you anticipated for a down payment.
Many buyers might also take advantage of down payment help programs. Furthermore, for qualified purchasers, some lending alternatives need as little as 3.5 percent (or even 0 percent) down. While putting down 20% has its advantages, especially in today's competitive market, keep in mind that you have other options. Speak with a professional to learn more about how much you may need to save and the resources available.
3. Throughout the process, work with a reputable real estate advisor.
Finally, no matter where you are on your homeownership path, working with a real estate professional is the greatest approach to ensure your success.
They may assist you with the initial steps, such as educating you on the process and connecting you with a reputable lender to get pre-approved. A real estate expert can assist you understand your local market and search for available properties whenever you're ready to start your search. When it comes time to make an offer, they'll be an expert advisor and negotiator who can help you stand out from the crowd.
The key to a successful house purchase is knowledge. Knowing market trends, how much of a down payment you'll need, and what options you have as a buyer today can give you the assurance you need to buy a house. Let's connect so you have someone on your side to guide you through the home-buying process.