We are facing a challenging time as we work together to combat COVID-19 in our country and even our own neighborhoods. With so much uncertainty in the air, is it a good time to think about buying a house? Especially as a First-Time Home Buyer?

The housing market can be highly seasonal, sales are typically low through the start of the year and then heats up in the spring and through the summer, like the weather. Unfortunately, the COVID-19 pandemic has changed those trends because of lockdowns and social distancing measures. The number of homes sold has fallen but prices appear to be holding steady for now.

Are there any benefits to becoming a First-Time Buyer right now?

Low-Interest Rates:

Interest rates have been dropping to an all-time low as a response to the COVID-19 pandemic. Real estate is one of the largest economic sectors; lowering the interest rate is an attempt to entice more people to purchase a home.

There are also various government incentives that may help first-time buyers achieve their dream of owning a home.

For more information contact me today!

Less Competition:

It’s a Buyer’s Market! The slowed activity in the real estate market may help first-time homebuyers in getting into their dream home at a lower price point. This is because there are fewer buyers shopping for new homes and sellers that want to sell quickly may be more likely to negotiate and lower the purchase price

Advice for First-Time Home Buyers:

Do not rush into homeownership if you are not ready. When buying a property, regardless if it is as a first-time homebuyer or not, it should be a decision made based on your life stage and financial situation, not the market. There are costs that you need to be prepared for such as mortgage payments, minimum down payment, closing costs, etc... so you need to ensure you have a secure source of income. If your employment and income are unstable, you may have trouble getting a mortgage, let alone a good mortgage rate.

In conclusion…

Is it a Good Time to Become a First-Time Home Buyer? Ultimately, that choice is up to you and your financial situation. There are pros and cons to purchasing a home at this time and there are many important factors that may affect your answer.

Feel free to reach out, I am more than happy to answer any questions in detail pertaining to your individual situation. Don’t forget to stay safe and stay healthy!

Buying your first home is a scary and exciting process because it’s a HUGE commitment. It’s easy to get swept up in the excitement of home shopping and mistakes can leave you with buyer’s remorse later.

Here are some First-Time Homebuyer Mistakes you may want to avoid:

1) Looking For a Home Before Applying For a Mortgage.
A common mistake that many first-time buyers make is to start viewing homes before they get in front of a mortgage professional. You may end up behind the ball if you find a home that you love and end up losing the property by not being pre-approved for a mortgage.

2) Draining Your Savings
It may not be a good idea to spend all or most of your savings on the down payment and closing costs, especially with the current events. It is a good idea to have three to six months of living expenses in an emergency fund no matter if you plan to buy a house or not.

3) Buying More House Than You Can Afford
It is easy to fall in love with a home that may stretch your budget but overextending yourself is never a good idea. Buying a house that exceeds your budget may put you at a riskier position and less likely to have wiggle room in your monthly budget for other expenses.

4) Miscalculating the Hidden Costs of Homeownership
If you are shocked by seeing your new monthly mortgage payment, wait until you add up the other costs of owning a home. As a homeowner, you will need to pay for property taxes, mortgage insurance, homeowners insurance, utilities, etc. That brings us back to the points listed above, you may need to keep your savings intact.

5) Paying More Attention to the House Than the Neighborhood
It is understandable that you would like a home that meets your needs and checks off items on your wish list. But it is easy to get lost in the home’s aesthetics instead of focusing on things that may be more important. It could be difficult to live in a house you love that is in a neighborhood that you dislike.