The demand for homes this year is steadily increasing as hopeful buyers continue to shop for homes. There are also record-low interest rates which has strengthened home buyers purchasing power. Younger buyers are looking to grow their wealth through homeownership.
Buying a home is an intimidating process for anyone, especially when it is your first time. Approximately 74% of millennials are interested in purchasing a home in the next year and it is extremely important to know how much to have saved for a down payment. First time home buyers represented 40% of single family home sales in the last quarter and also represented 57% of purchase loan borrowers. With an increase of first time home buyers, it is necessary to understand the requirements before making a purchase.
Generally buyers tend to say they have less savings than the national average so it is essential to know how much to have saved for your down payment. Contrary to popular belief, you don’t always need to have a down payment of 20%, depending on the price of the house. First time buyers generally only have a 6% down payment. There are many options to help encourage first time home buyers to find the right fit and potential dream house.
Now is the right time to buy a home and millennials are actively searching online during their home buying process. Millennials and first time home buyers are utilizing technology to help streamline a more efficient home buying process.
Tips for preparing to buy your first home:
- Start saving early
- Decide how much you can afford
- Strengthen your credit
- Explore mortgage options
- Research assistance programs
- Get pre-approved!
The next steps first time home buyers need to consider are choosing an agent carefully and picking the right neighborhood to fit their lifestyle. It is always important to contact a local real estate professional to understand the requirements of buying a home. Seven Gables is a great option to help first time home buyers actualize their dreams of buying a home. Contact us today to help ease your mind during your first time home buying experience!