If you’re a young person in America right now, you may think it nigh-impossible to buy a home for you or your family. In reality, there’s substantial evidence that first time home buyers are purchasing homes at a relatively young age. Research in the First Time Home Buyers Guide shows that the average age of first time buyers is 32, and 35% of all homes sold are to first time buyers.
However, buying a home is not an easy choice. The process of setting your financials straight may well take over a year, but there are ways to minimize stress in order to make the transition as simple (and pain-free!) as possible. The same goes for non-financial elements as well.
Most first time home buyers do not pay for their property outright in cash. There are several ways to acquire the funding to purchase a home: FHA (good for first timers or those with shaky credit), USDA (good for lower-income borrowers in rural areas), VA (good for those with military credentials), Freddie Mae and Mac (usually achieve a 3-5% down payment), 203k (good for fixer-uppers), Dollar Homes, and Good Neighbor Next Door (good for hometown heroes like teachers, firefighters, and police). Each has pros and cons, so choose what’s best for you.
Here’s where some preplanning is necessary. From 12 months out to the final month of closing, there is a relatively simple checklist of things to be on top of if you want to be totally prepared for your new purchase. This includes getting pre-approved, performing a home inspection, and broader tasks like researching neighborhoods and saving for maintenance.
Credit and Loans
Though it is not unheard of, most people do not pay for their home with all-cash offers. Those who do so are usually retirees or have been owning property for some time. Because you’re a first time home buyer, it’ll be extra important to set up consistent rules so you preserve your credit without starving your wallet. Definitely talk to a lender that specializes with first time buyers.
It’s true that 2018 is a great time to get a mortgage, and exploring your options can’t hurt. We at The Bell Team know the market and can provide you with advice depending on your situation. When you put your trust in us, we’ll do what we can to set you up in the home that is best for you and yours. We’re always ready to help!