In today's real estate market, first time homebuyers are at an all-time low. More and more young adults are opting to rent, or even move back in with their parents, and do not consider homeownership a viable option.
Challenges For First Time Buyers
There are numerous legit reasons for this hesitance in becoming a homeowner. Many young adults have a very tight budget, with overhanging debt from student loans, car payments, etc. Others simply have a lack of confidence in the housing market after watching their parents suffer through the housing recession just a few years ago. A large portion of people just simply think they cannot afford to own a home, or do not want to own a home when they are unsure of their future plans.
Yet, the biggest challenge we see as keeping people from buying their first homes is the uncertainty of the process. Owning your own home is a big deal! This, for most people, will be the largest purchase you will make in your life. It is difficult to find a home - that isn't falling over - for less than $100,000 in many areas around the country, and that is a lot of money to take a chance on. So we can understand why it can be so hard to consider homeownership as a viable option when you don't have the slightest idea where to begin and how to prevent yourself from making a huge mistake.
Tips For Success
The main thing to remember during the home buying process is that you are not alone. Between your realtor and your mortgage lender, they have experience helping hundreds of people fresh out of college and in new careers to buy their very first homes. We have seen all the common mistakes people make and misconceptions they have regarding buying their first home, and we can help you avoid going down the wrong path. Take a look at the infographic below to get a better idea of what you'll need to do (and what not to do) if you are interested in purchasing your first home.
The main point to take away is that if you are considering purchasing your first home, open communication with all parties involved is going to be your key to success. Make your goals clear to your realtor and mortgage lender. Keeping them posted on your status throughout the process will help avoid the common problems and land you on the right path to homeownership.
Kirk Chivas is a licensed Loan Officer and co-owner of First Commerce Financial, LLC, a mortgage brokerage based in Wixom, Michigan. With over 17 years of experience, Kirk has committed to providing Michigan residents with accurate and honest mortgage advice. If you have any questions about your current or future mortgage needs, please feel free to ask Kirk a question over on his website.