Keys to Success for First-Time Homebuyers

<article class="post-704587 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-704587"><span class="entry-date">May 31, 2023</span><div class="entry-header center-block text-center"><h1 class="entry-title">Keys to Success for First-Time Homebuyers</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=Keys+to+Success+for+First-Time+Homebuyers&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fkeys-to-success-for-first-time-homebuyers%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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</div></div><div class="post-tax post-category"><span></span><a href="../category/realtor-blog/index.html" rel="tag">Realtor Blog</a></div><div class="post-tax post-post_tag"></div></div><div class="entry-content"><div><img alt="Keys to Success for First-Time Homebuyers Simplifying The Market" decoding="async" loading="lazy" src="https://media.agentaprd.com/sites/222/20230531-keys-to-success-for-first-time-homebuyers.webp" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="358"/>
<p>Buying your first <a href="https://www.simplifyingthemarket.com/2023/04/18/5-reasons-millennials-are-buying-homes/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" style="color: blue;" target="_blank">home</a> is an exciting decision and a major milestone that has the power to change your life for the better. As a first-time homebuyer, it’s a vision you can bring to life, but, as the <em>National Association of Realtors</em> (NAR) <a href="https://www.nar.realtor/magazine/real-estate-news/first-time-home-buyers-are-vanishing-from-the-market" rel="noopener noreferrer" style="color: blue;" target="_blank">shares</a>, you’ll have to overcome some factors that have made it more challenging in recent years:</p>
<p></p>
<blockquote><p><em>“Since 2011, the share of first-time home buyers has been under the historical norm of 40% as buyers face tight inventory, rising home prices, rising rents and high student debt loads.”</em></p></blockquote>
<p>That said, if you’re looking to purchase your first home, here are two things you can consider to help make your dreams a reality.</p>
<h4><strong>Save Money with First-Time Homebuyer Programs</strong></h4>
<p>Being able to pay for the initial costs and fees associated with homeownership can feel like a major hurdle. Whether that’s getting a loan, being able to put together a down payment, or having money for closing costs – there are a variety of expenses that can make buying your first home feel <a href="https://www.simplifyingthemarket.com/2023/04/28/ways-to-overcome-affordability-challenges-in-todays-housing-market-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" style="color: blue;" target="_blank">challenging</a>. </p>
<p>Fortunately, there are a lot of public and private first-time homebuyer programs that can help you get a loan with little-to-no money upfront. <em>CNET</em> <a href="https://www.cnet.com/personal-finance/mortgages/advice/first-time-homebuyers-these-8-loan-programs-can-save-you-money/" rel="noopener noreferrer" style="color: blue;" target="_blank">explains</a>:</p>
<p></p>
<blockquote><p><em>“</em><strong><em>A first-time homebuyer program can help make homeownership more affordable and accessible</em></strong><em> by offering lower mortgage rates, down payment assistance and tax incentives.”</em> </p></blockquote>
<p>In fact, as <em>Bankrate</em> <a href="https://www.bankrate.com/mortgages/first-time-homebuyer-guide/" rel="noopener noreferrer" style="color: blue;" target="_blank">says</a>, many of these programs are offered by state and local governments:</p>
<p></p>
<blockquote><p><em>“</em><strong><em>Many states and local governments have programs that offer down payment or closing cost assistance</em></strong><em> – either low-interest-rate loans, deferred loans or even forgivable loans (aka grants) – to people looking to buy their first house . . .”</em> </p></blockquote>
<p>To take advantage of these programs, contact the housing authority in your state and browse sites like <a href="https://downpaymentresource.com/" rel="noopener noreferrer" style="color: blue;" target="_blank">Down Payment Resource</a>.</p>
<h4><strong>The Supply of Homes for Sale Is Low, So Explore Every Possibility</strong></h4>
<p>It’s a sellers’ market, meaning there aren’t enough homes on the market to meet buyer demand. So, how can you be sure you’re doing everything you can to find a home that works for you? You can increase your options by considering condominiums (condos) and townhomes. <em>U.S. News</em> <a href="https://realestate.usnews.com/real-estate/articles/what-should-you-consider-when-deciding-between-a-condo-vs-house" rel="noopener noreferrer" style="color: blue;" target="_blank">tells</a> us these housing types are often less expensive than single-family homes:</p>
<p></p>
<blockquote><p><em>“</em><strong><em>Condos are usually less expensive than standalone houses</em></strong><em> . . . They are also less expensive to insure.”</em></p></blockquote>
<p>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 dream of owning and building equity. Beyond that, another major perk is they typically require less maintenance. As <em>U.S. News</em> <a href="https://realestate.usnews.com/real-estate/articles/what-should-you-consider-when-deciding-between-a-condo-vs-house" rel="noopener noreferrer" style="color: blue;" target="_blank">says</a> in the same article:</p>
<p></p>
<blockquote><p><em>“</em><strong><em>The strongest reason for purchasing a condo is that all external maintenance is usually covered by the condo association</em></strong><em>, such as landscaping, pool maintenance, external painting, paving, plowing and more. This fee also covers some internal maintenance, such as gas, electric, plumbing, HVAC and other mechanical systems.” </em></p></blockquote>
<p>Townhomes and condos are great ways to get into <a href="https://www.simplifyingthemarket.com/2023/05/01/why-buying-a-home-makes-more-sense-than-renting-today/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" style="color: blue;" target="_blank">homeownership</a>. Owning your home allows you to build <a href="https://www.simplifyingthemarket.com/2023/04/18/5-reasons-millennials-are-buying-homes/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" style="color: blue;" target="_blank">equity</a>, increase your net worth, and can fuel a <a href="https://www.simplifyingthemarket.com/2023/05/15/homeowners-have-incredible-equity-to-leverage-right-now/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" style="color: blue;" target="_blank">future move</a>.</p>
<p>The best way to make sure you’re set up for success, especially if you’re just starting out, is to work with a trusted <a href="https://www.simplifyingthemarket.com/2023/05/22/why-buyers-need-an-expert-agent-by-their-side/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" style="color: blue;" target="_blank">real estate agent</a>. They can educate you on the homebuying process, help you understand your local area to find options that are right for you, and coach you through making an offer in a competitive market.</p>
<h3>SBottom Line</h3>
<p>Today’s housing market provides some <a href="https://www.simplifyingthemarket.com/2023/04/26/the-three-factors-affecting-home-affordability-today/" rel="noopener noreferrer" style="color: blue;" target="_blank">challenges</a> for first-time homebuyers. But, there are still ways to achieve your goals, like utilizing first-time homebuyer programs and considering all of your housing options. Connect with a local real estate professional so you have an expert on your side who can help you navigate the process.</p>
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