Budgets & Compromises – the Path for First-Time Homeowners
According to a new survey from Realtor.com, first-time homebuyers indicate that their finances are the first order of business to see what they can afford. Forbes states, “According to a survey of 1,000 recent and prospective first-time homebuyers in the U.S., more than two-thirds (68%) of shoppers were surprised by what they could afford for their first home. Forty-seven percent were surprised because their budget was larger than they thought, and 21% were surprised because it was less.”
As many in the real estate business saw, there was a huge incline to home buying in 2020 primarily due to a hefty decline of mortgage interest rates. As we have previously mentioned, a lower interest rate can help individuals afford a home that may have not been as attainable with a higher interest rate.
Purchasing a home is a balancing act, you need to prepare to compromise on must-haves and what you are comfortable to spend each month, especially for first-time homebuyers. Depending on where in the country you intend on purchasing a home, small luxuries like a garage or outdoor space may need to be eliminated to stay in budget. This can be great for goal-setting for the next home or make you realize what you don’t actually need in order to survive.
A Stand Out Bid.
We’ve talked about this in previous posts, but 2020 was the year of multiple bids and 2021 most likely won’t be too different. First-time homebuyers need to understand all the costs associated with purchasing a home prior to them signing the contract. In some instances, going $5,000 over can help but we like to tell buyers and their agents to get a local lender that is reliable and reputable to help with your funding and be flexible on some contingencies to make your offer stand out.
As we touch on lending, a parent’s help can be beneficial with a sum of money as a gift. Did you know that for many Americans, it can take less than three years sometimes for first-time homebuyers to cut their expenses and save forwards their downpayment?
Reach out to the Jen Martinez Team if you have any questions regarding the home buying process and we would be more than happy to help you work towards your goals of homeownership!