What is the best option for first-time home buyers?

Rising home values, existing mortgage rates, and inventory shortages are currently significant challenges to all homebuyers. But today's first-time homebuyer journey feels seemingly impossible because they’ve never bought a home before, and the conventional wisdom, social media, people in their lives are telling them they can’t do it.

Afterall, even a well-qualified borrower in a position to buy a home can find the journey to homeownership challenging. Higher rates make qualifying harder as they can lead to higher monthly payments. Therefore, many homebuyers may feel like they must wait until the housing market shifts downward before making a move, but home prices continue to rise. Alas, they feel stuck between a rock and a hard place.?

Even so, there are still solutions that can help make homeownership achievable. Here are some ideas:?

Prioritize Must-Haves

To help you focus and find the best house options, create a checklist. First, create a list with all the features you would like in a home. Include features like location, size of house, number of bedrooms, yard size, and more. Add things you don’t want, too. For example, if you have kids and pets, a condominium may be off the table, so you must buy a house. Divide this list into your non-negotiables and the "nice-to-haves." Non-negotiables on the left, “nice to haves” on the right.

Expand Your Search Radius

Sometimes, a specific neighborhood will be out of budget for your first home. Work with a Realtor to help consider nearby areas with similar amenities like distance from work, parks, good schools, walkability, etc... Have your agent review up-and-coming neighborhoods.

Consider a Fixer-Upper

Instead of waiting for the perfect move-in-ready home, consider properties that need updating. New paint, flooring, and fixtures can transform a home while keeping the price lower. We have an excellent home renovation purchase option for this.?

Flexibility with Property Types

Townhomes, condominiums, and duplexes are great alternatives as steppingstones to your dream home.?All come with low down payment options, too!

Alternative Financing & Incentives

Seller concessions, interest rate buydowns, and down payment assistance programs can help make a home purchase more affordable. Oftentimes, sellers may not want to lower their price, but they will negotiate for closing cost assistance. Lastly, various programs exist for borrowers who don’t have a ton of money. They’re knows as Down Payment Assistance programs. They have very competitive rates, and we’re experts at guiding you through these.

Be Ready

Trying to time the market or procrastinating will not help. Getting a preapproval and being nimble is the name of the game. That way, you are prepared when the right opportunity presents itself.?

The reality is that being strategic and adaptable will get you on the path to homeownership. Let's discuss a strategy that will work for you today.

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