SPECIAL SECTION REAL ESTATE
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 are making it easier
for borrowers with more debt to still qualify.
Continued on next page >
MILLCREEK
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SUMMER 2018
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