Several million people will buy a house for the very first time this year, and maybe you’ll be one of them!
According to the National Association of REALTORS® and its most recent Existing Home Sales report, first-time home buyers accounted for 31percent of homes sold last month. It’s a sizable percentage and a figure that’s stayed fairly steady over the last few years, even as home prices have climbed.
So, how are today’s renters doing it? Their success comes from three specific fronts.
First, buyers today know more about the home-buying journey than prior generations; and, they’re giving particular focus to the rise of government-backed mortgages that allow for smaller-sized down payments.
When you don’t have to spend 4 years saving your salary for a down payment on a house, it’s faster to live the American Dream.
Second, renters today are shopping more realistically.
Some time ago, buyers stopped asking lenders “how much house can you approve me for?” and started asking the better question: “For a payment of $x, how much home can I get?”
When buyers shop for homes by payment, they’re more likely to stay committed to their journey and feel less stress about their budget.
And, third, today’s renters are using public down payment assistance programs through state and local governments to get grants, interest-free loans, and other breaks to help bring homeownership closer.
When you’re thinking of buying a house, it’s never too soon to start planning. Your goals might be closer than you think.
Are you a first time home buyer?
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When your lender says, “you have to act quickly” is not some high-pressure sales tactic meant to make you feel fear. It’s the truth.