Buying your first home is hard enough. Unfortunately, it seems that current home buyers have to without worry about inflation, prices that rapidly plummeted then increased due to a worldwide pandemic, and a low supply of housing that’s causing homes to sell for over their asking price. But that doesn’t mean you shouldn’t follow your dreams to own your first property. In fact, there are actually tons of advantages to being a first-time home buyer. Here’s a quick rundown of what you’ll need and what perks you can expect as a new home buyer.
What You’ll Need
Here are a few things you’ll need to help you buy your new home, especially in today’s market:
A good real estate agent: Today’s market is all about being fast. You want to ensure that your real estate agent is always available and acts fast to get your offers in. Just one day of missed emails can mean that you miss a house.
Savings for your down payment: Even if you’re only paying 3-5% of your down payment, that can still be a good chunk of change in California, so you’ll want to start saving ASAP. Your lender will also want to ensure that you have a good nest of savings before agreeing to loan you money.
A good credit score: Naturally, this is a must for mortgages.
A budget: You’ll want to get an idea of how much a lender will give you to purchase your first home. Some real estates won’t even work with you until you have a budget. Remember that just because a bank says it’ll lend you a certain amount doesn’t mean you should borrow that much. You still want to have money for life expenses, vacations, and emergencies.
Pre-approval for a loan: In this market, you don’t have time to waste. Get pre-approved for a loan now so that you’re ready to buy when you find the perfect home but take your time shopping around and comparing interest rates. A good real estate agent can help you navigate this process and make sure you’re getting the best deal.
New Home Buyer Perks
There are tons of perks that new home buyers can utilize to make the process more secure and less expensive. Here are a few:
There are state programs, tax breaks, and federally backed loans if you can’t pay the minimum down payment (usually 20% of purchase price, but sometimes as low as 3 to 5% for first-time home buyers).
First-timers can withdraw up to $10,000 out of their IRA without paying the 10% penalty for early withdrawal.
California offers a few other programs to their buyers too, such as the MyHome Assistance Program, GSFA OpenDoors, and more.
Got more questions? Give us a call for personalized recommendations and tips for your journey to buying your first home!
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