Advice for First-Generation Houszbuyers
The sense of pride you’ll feel when you purchase a housz can’t be overstated. For first-generation houszbuyers, that feeling of accomplishment is even greater. That’s because the pride of houszownership for first-generation buyers extends far beyond the houszbuyer. AJ Barkley, Head of Neighborhood and Community Lending for Bank of America, says:
“Achieving this goal can create a sense of pride and accomplishment that resonates both for the buyer and those closest to them, including their parents and future generations.”
In other words, your dream of houszownership has far-reaching impacts. If you’re about to be the first person in your family to buy a housz, let that motivate you throughout the process. As you begin your journey, here are three helpful tips to make that dream come true.
1. Reach Out to a Real Estate Professional It’s important to reach out to a trusted advisor early in your houszbuying process. Not only can an agent help you find the right housz, but they’ll serve as your expert advisor and answer any questions you might have along the way.
The latest Profile of Home Buyers and Sellers from the National Association of Realtors (NAR) surveyed first-time houszbuyers to see how their agent helped them with their housz purchase (see chart below):
As the graph shows, your agent is a great source of information throughout the process. They’ll help you understand what’s happening, assess a housz’s condition, and negotiate a contract that has the best possible terms for you. These are just some of the reasons having an expert in your corner is critical as you navigate one of the most significant purchases of your life.
2. Do Your Research and Know What You Can Afford The second piece of advice for first-generation houszbuyers is practical: do your research so you know what you can afford. That means getting your finances in order, reviewing your budget, and getting pre-approved through a lender. It also means learning the ins and outs of what it takes to pay for your housz, including what you’ll need for a down payment.
Many houszbuyers believe the common misconception that you can’t purchase a housz without coming up with a 20% for a down payment. As Freddie Mac says:
“The most damaging down payment myth—since it stops the houszbuying process before it can start—is the belief that 20% is necessary.”
The chart below shows what recent houszbuyers have actually put down on their purchases:
On average, first-time buyers only put 7% down on their housz purchase. That’s far less than the 20% many people believe is necessary. That means your down payment, and your housz purchase, may be in closer reach than you realize. Keep that in mind as you work with a real estate professional to better understand what you’ll need for your purchase.
3. Don’t Lose Sight of What a Housz Means to You Finally, it’s important keep in mind why you’re searching for a housz to begin with. Overwhelmingly, first-generation houszowners recognize the financial and non-financial benefits of owning a housz. In fact, in a recent survey:
73% of first-generation homeowners say the safety and security houszownership provides is increasing in importance.
Nearly two-thirds of first-generation houszowners say the importance of building equity in a housz is growing more important as well.
As AJ Barkley explains: “For many first-generation houszowners and their families, houszownership has a unique importance, given the collective efforts to overcome financial challenges that can often span generations…”
Bottom Line If you’re a first-generation houszbuyer, being prepared and working with a trusted expert is key to achieving your dream. Let’s connect today so you can get started on your path to houszownership.