SPECIAL SECTION:
WHAT FIRST-TIME
HOMEBUYERS
SHOULD KNOW
Last year was a great year for new homebuyers.
According to the National Association of Realtors, about
35 percent of the homebuying market was made up of
first-time buyers. Yet, each year is not created equally in
the mortgage industry and real estate market. Changes
happen frequently and it is often hard to keep up. If
you’re looking to break into real estate for the first time,
here are some insights into how to navigate the market.
Saving. Step number one for a first-time homebuyer
should always be saving. Take a look at your current
finances. It’s recommended that your mortgage
payment not exceed 30 percent of your gross monthly
income. See where you can cut back spending to put
away a little extra out of your paycheck every month
for your new home. Not only can this cash go toward
a down payment, but most likely you’ll need furniture,
appliances, and decorations to furnish your new home.
Don’t just calculate the amount of money needed for a
down payment. Keep in mind the unforeseen expenses
such as home repairs, agent fees and closing costs. You
can never save too much!
1. Mortgage. Applying for a mortgage can be an
intimidating process, but if you prepare accordingly,
you’ll be happy with the outcome. According to
LendingTree.com, mortgage lenders are allowing
higher debt levels for borrowers with lower down
payments (as little as 3 percent on a conventional
mortgage loan). You may not need the typical 20
percent down that was required of homebuyers a
few decades ago. If your debt-to-income ratio is high,
you may not have to worry. Mortgage companies
44
724.942.0940 TO ADVERTISE
❘
icmags.com
Real Estate
are making it easier for borrowers with more debt to
still qualify.
2. Agent. Having a real estate agent in your corner
for a first-time purchase is key. Agents will not only
help you navigate the home-buying process, but can
also be a valuable resource for an inside look at new
homes that go on the market. This gives buyers the
opportunity to view homes that may not have made it
onto real estate websites for public viewing.
3. Location. Your dream house may not be in your
dream location, and your dream location may not have
your dream house. Don’t get stuck in a rut if you’re
not seeing everything you want in your price range.
Typically, you’ll need to make some compromises
with your first home. Keep a few non-negotiables in
your back pocket, but otherwise be open to the idea
of putting some of your own upgrades and changes
into a home that may not have everything on your
wish list.
4. Home. Don’t get stuck in the mindset that you
should spend every dollar that you qualify for in your
mortgage. This could lead to bigger problems down
the road. Look in the market under your max budget
and be creative when looking at homes for ways to
make improvements or changes that better fit your
needs. A little bit of sweat equity can go a long way
and will give the home your own personal touch.
5. Offer. Once you’ve found a house you want to call
“home,” work with your real estate agent to come
up with an offer the seller can’t refuse. Whether the
house needs some improvements or it’s a hot buy on
the market, your agent can guide you into making a
serious offer to the seller. If you’re feeling passionate
about the home, write the seller a letter explaining
why you’re the best buyer for the home. These touches
can sometimes be the difference between getting the
house of your dreams, or losing it to another buyer.
6. Moving. You’ve done it! You’ve purchased your first
home. Now that you have a mortgage to pay, keep in
mind some money-saving tips, like asking your closest
family and friends to help you move! A little pizza
can go a long way when looking for some extra help.
Make a plan for those personal touches to add to your
home. Test out paint colors in each room to make sure
you like the color in the daylight. Purchase furniture
after making detailed measurements (you don’t want
to come home with something that doesn’t fit!). Add
some curb appeal as a finishing touch and as a way to
meet your new neighbors!