According to the National Association of Realtors® 2017 Home Buyer and Seller Generational Trends study, 36% of people buying a home are first-time home buyers. And of those age 36 and younger, 66% are purchasing a home for the first time.
Many first-time home buyers might not be aware of the challenges that come with buying a home. At Santa Fe Real Estate Property (https://santaferealestateproperty.com) we’ve put together a list of some of the top challenges for first-time home buyers. Knowing how to handle these challenges in advance can save a lot of frustration, time, and even money.
Home Buying Challenge: Not Understanding the Full Financial Impact of a New Home
Many first-time home buyers begin their search at the point they can afford a mortgage, forgetting to take into account the many other financial factors like property taxes, home owners insurance, higher utility bills, maintenance, and repair expenses. As such it’s important to think “long term” when it comes to buying a home. By planning in advance for the full financial impact, you’ll find it more rewarding when you step through the threshold of your new home.
Home Buying Challenge: Understanding the Mortgage
When it comes to a mortgage, many first-time home buyers may assume that you just fill out some paperwork, qualify, then move in! It would be nice if mortgages were so simplistic. However, there are many things that go into mortgages that are important for first-time home buyers to understand. For example:
Home Buying Challenge: The Down Payment
The down-payment on a new home is usually the biggest initial expense. Make sure you do your homework with this one. For example, did you know that first-time home buyers who qualify for an FHA loan (see “Understanding the Mortgage” above) may have lower down-payment requirements? Veterans can sometimes get low or even zero down payment mortgages. And there are down payment incentives for buying homes in rural areas.
Take the time to focus on down payment options that will work best for you. For example, if your credit score is close to 580, but not quite there, you may want to take time to focus on raising it in order to qualify for the lower down-payment FHA loan.
Other Challenges and Considerations for First-Time Home Buyers:
These challenges are why it is vital to have a good real estate agent working in partnership with you. An agent can help guide you through all the challenges and keep you focused on your goal of buying a home that best matches your needs. If you are home shopping in Santa Fe, then contact Darlene Streit at 505.920.8001.
Darlene Streit 505.920.8001
Sotheby's International Realty ®
Main: 326 Grant Avenue
Office: 417 East Palace Avenue Santa Fe, NM 87501
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