Strategic Tips for Buying Your First Home

Buying your first home is a big, exciting step and a major milestone that has the power to improve your life. As a first-time homebuyer, it’s a dream you can make come true, but there are some hurdles you’ll need to overcome in today’s housing market – specifically the limited supply of homes for sale and ongoing affordability challenges.

So, if you’re ready, willing, and able to buy your first home, here are three tips to help you turn your dream into a reality.

Save Money with First-Time Homebuyer Programs                                       

Paying the initial costs of homeownership, like your down payment and closing costs, can feel a bit daunting. But there are many assistance programs for first-time homebuyers that can help you get a loan with little or no money upfront. 

According to Bankrate: “. . . you might qualify for a first-time homebuyer loan or assistance. First-time buyer loans typically have more flexible requirements, suc as a lower down payment and credit score. Many help buyers with closing costs and the down payments through grants and low-interest loans. Some lenders have programs specifically for first responders, those in the nursing profession and others. (If you’d like more information, please contact us at 508-36-5664.)

Contrary to what your Uncle Bob, who “knows a little something about real estate,” is saying, you don’t need a 20% deposit. That hasn’t been the case for years.

Expand Your Options by Looking at Condos and Townhouses

Right now, there aren’t enough homes for sale for everyone who wants to buy one. That’s pushing home prices up and making affordability tight for buyers. One way to deal with that issue and find a home right now is to consider condos and townhouses. 

As Realtor.com explains: “For many newbies, it might just be a matter of making a shift toward something they can better afford—like a condo or townhouse. These lower-cost homes have historically been a steppingstone for buyers looking for a less expensive alternative to a single-family home.”

One reason why they may be more affordable is because they’re often smaller. But they still give you the chance to get your foot in the door and achieve your goal of owning a home and building equity. And that equity can help fuel your move into a larger home later on if you decide you need something bigger.

Consider Pooling Your Resources To Buy a Multi-Generational Home

Another way to break into the market is by purchasing a home with loved ones, like parents or older relatives who need to downsize.  

According to Money.com: “Buying a home with another person has some obvious advantages in the mortgage department. With two incomes in the mix, buyers can likely qualify for a larger mortgage — a big help in today’s high-cost market.”

We’re hearing now of children buying the houses where they grew up. Not only does this allow parents to continue to live in what was probably their dream home, it also opens up a variety of financing options. But to be truly successful, parents, their adult children and partners, and any offspring must have a good relationship.

In this week’s video, Hank some additional advice for first time homebuyers.

If you’re ready to buy your first home, or giving it serious consideration, let’s talk. We can help you plan your next moves.

Mari and Hank