Younger generations are becoming increasingly concerned over buying a home. Will this ever be possible for generations like Gen Z? For some, it feels as though inflation and mortgage interest rates are pinned against them. Is this you? Are you desiring to buy a home but feeling defeated by the current housing market?
The number one piece of advice for a first-time home buyer is to work with an agent. Skilled and informed, real estate agents can be the key-component in finding you the perfect home.
Here are a few other tips that will help younger generation home-buyers navigate home buying in this market:
1. Be open to different options: When buying your first home you must see it as an investment. First-time home buyers will benefit from being able to make a list of their must-haves and be able to compromise on the things they can live without. Walk through this list with your agent so that they can have a better idea of where to lead you in your search.
2. Become informed on down payments: A lot of people think when you purchase a house you need 20% for a down payment. This is not always the case. It is important to explore all of your options regarding down payments. There are quite a few options for first-time home buyers and even down payment assistance plans for those who qualify. Down payment assistance programs typically include grants, deferred payment loans, low-interest loans, and forgivable loans. Researching each option would be beneficial.
3. Seek out less urban areas: Being open to areas that are outside of the city or not quite as developed is a great option for affordability. If you do your research and land in an area that could potentially be further developed in the next 5-10 years, you will be jumping into a great investment! Keep an open mind and remember, this is your first home, not your final landing place.
4. Prepare for all costs: As with anything in life, preparation and being well-informed is the move. Knowing all of the costs associated with home buying will help you better prepare. If you can save all of your out-of-pocket costs before your home search, you will be in a much better place, less stressed, and set up to put in an offer that will make you a homeowner.
Key takeaways:
● Be open to compromises when purchasing your first home
● Explore downpayment assistance options
● Look into more rural areas
● Prepare for all costs associated with home buying
This year’s housing market could hold a lot of unpredictability. Stay encouraged by informing yourself and preparing for your first-time home purchase…and don’t forget to reach out to your local real estate agent!