Buying your first home is a major decision and an exciting milestone. But, it can feel overwhelming. If you’re looking to purchase your first home, you may be wondering what’s happening in the housing market today, how much you need to save, and where to start. Here are three things to consider before buying a house.
Consider Purchasing a Condo or Townhome
Today, there are far more buyers in the market than there are homes available for sale. When that happens, it’s a good idea to do what you can to increase your pool of options. That could mean expanding your search to include additional housing types. For first-time buyers, considering condominiums (condos) and townhomes can be an excellent way to increase your choices. According to Bankrate, “Townhomes often cost less than single-family homes of a similar size in the same location.”
Condos and townhomes are both great entryways into homeownership. When you buy either one, you can start building equity which increases your net worth and can fuel a future move.
Be Realistic about a Down Payment
Saving for a down payment can feel like one of the biggest obstacles for homebuyers, but that doesn’t have to be the case. One of the biggest misconceptions among housing consumers is what the typical down payment is and what amount is needed to enter homeownership.
The median down payment for all homebuyers is only 13%. That’s well below the common misconception of 20%, and it’s even lower for younger buyers. This could mean you may not need to save as much for a down payment as you initially thought.
There are also down payment assistance programs available for many buyers. Not to mention, some loan options require as little as 3% (or even 0%) down for buyers who qualify. While there are advantages to putting 20% down, especially in today’s competitive market, know that you have options.
Work With a Trusted Mortgage Lender
Finally, no matter where you’re at in your homeownership journey, the best way to make sure you’re set up for success is to work with the Ultimate Lending Team.
If you’re just starting out, we can help you with the initial steps. This includes, educating you on the home buying process, getting you pre-approved, and connecting you with a trusted realtor. Once you’re ready to begin your search, we will help you understand your local market and help show you what your budget truly is. When it’s time to make an offer, we’ll be an expert advisor to help your offer stand out above the rest and win.
There are so many things to consider before buying a house. Knowing market trends, what you need for a down payment, and what options you have as a buyer today can give you the confidence you need to buy a home. Connect with the Ultimate Lending Team so you have an expert on your side who can help you navigate the homebuying process.