Friends and Clients—
No matter how many home purchases you’ve made, there are always lessons to learn during the home buying process. If it’s your first time, however, you’re definitely at a big disadvantage.
According to NerdWallet, first-time buyers have to put in 3.8 offers on average before an offer is accepted—experienced buyers only need to make 2.5.
On top of this, 56% of newbie buyers had to offer above asking price before getting a deal, while other homebuyers only needed to 35% of the time. On top of this, 34% of first-time buyers felt financially insecure about their purchase, but only 17% of experienced buyers reported the same.
Needless to say, it’s tough out there for people new to the home purchasing process. And with high demand for entry-level homes, buyers are facing a lot of competition—simple mistakes can mean losing out on a great opportunity.
Here are some simple things you can do to even out the playing field when you’re making your first (or seventh) home purchase:
1. Shop around. Half of all homebuyers fail to shop around for a mortgage, instead opting for the first lender they applied to. Shopping around can save you hundreds a year in interest. In fact, if all Americans shopped around on their mortgages, they’d save around $776 million in one year.
2. Put less down. You don’t need to put 20% down to purchase a home. It’s possible to put much less down, especially if you have good credit. In a lot of cases, it makes more sense to buy now instead of saving up, but remember: Your mortgage payments will be higher and you’ll likely need mortgage insurance.
3. Use an online calculator. Various websites offer home affordability calculators, helping you understand how your salary and debt affect what you can afford.
4. Compromise. You’re not going to find everything you want in a home, so identify your biggest priorities. For example, do you care about square footage, commute time, local schools, and location?
5. Get ready for emotions. Buying a home is definitely an ordeal filled with excitement, anxiety, and even disappointment. Be prepared for the ups and downs and you’ll be able to handle them more easily.
The best way to make the process go as smoothly and efficiently as possible is to speak with a great real estate agent. If you’re ready to become a homeowner, I’d be more than happy to help you, step by step, throughout the entire home buying experience.
If you would like to get the process started, have any questions, or simply need more information, feel free to give me a call at (703) 963-5500 or email me at email@example.com. In the meantime, I look forward to hearing from you soon.