Say Hello to Homeownership: Tips for First-Time Buyers in Today's Market
Updated: Mar 3, 2021
Is it time to say good-bye to renting and hello to home ownership? Owning a home is more than just the freedom to paint the walls your favorite color of purple or plant new shrubs in your backyard. For many, homeownership provides a real step toward personal wealth and financial security.
Interest rates are low and for many, 2021 is the perfect time to jump into the real estate market. But before taking that plunge, there are a few things to consider that may make the process both easier and less stressful.
Our current Seller’s Market has provided some new challenges for buyers entering the real estate market. With low inventory, there is strong competition for homes in our area. So, before taking the plunge, put yourself in the best possible position to make the leap to owning your first home!
1. Examine your lifestyle Take the time to assess your needs and remember that every home purchase requires a degree of compromise. First, examine your current lifestyle and determine which locale best suits your needs. The pandemic has changed the way that many companies do business and has opened the door for employees to consider new locations. Spend some time visiting potential neighborhoods and go for walks or grab a bite at a local deli. Know your needs and do your research.
2. Talk to a Lender A lender is crucial to the home-buying process. Finding out what you can reasonably afford BEFORE beginning a home search is a crucial step. Your lender will discuss down payment requirements and various loan options to help find the right loan for you. It’s important to remember that owning a home has its own hidden set of costs including maintenance, insurance fees, updates, etc. As you consider how much to spend on a home, be sure to consider your general lifestyle choices to be confident that your house payment and additional costs are conducive to your future goals.
3. Find a local Buyer’s Agent A Buyer’s Agent represents the buyer’s needs exclusively. A great Buyer’s Agent works diligently to help you locate ideal properties so finding a local agent with extensive neighborhood experience is essential to the process and can make the process much more efficient—and fun!
4. Watch your credit Because buying a home may be one of the largest financial decisions you’ll ever make, caring for your credit during the process is essential. Hit the pause button on large purchases, such as car loans or leases. Wait until after closing to upgrade to the newest phone. Changes to your debt-to-income ratio can change how much home you qualify for, so be careful.
Interested in learning more about taking those first steps to homeownership? It would be my pleasure to assist you in finding the home of your dreams!