First Time Home Buyer

Infographic: Who Are Today's First-Time Homebuyers?

All the paperwork is signed, you’ve got the keys and crossed the threshold into your first new home—it’s an amazing feeling. In 2018, first-time homebuyers were responsible for 33% of all home purchases, and 65% of these buyers were part of the millennial generation.1 Who are these homebuyers, and can learning how they made their purchasing dreams a reality help you do the same?

Infographic: Who are today's first-time homebuyers? Mobile Infographic: Who are today's first-time homebuyers?

If you’re looking to purchase your first home, these four tips can help you prepare.

1. Keep an eye on your credit score.

Your credit score can impact whether you are approved for a mortgage and affect your interest rate. Make sure your credit report is error-free, continue to make on-time payments, and try not to open any new lines of credit once you’ve started the mortgage application process.

2. Understand your budget.

It’s more than just the down payment and monthly mortgage costs. Property taxes, insurance, closing costs, and repair and maintenance should all be factored into your budget.

3. Bust the 20% down myth.

A 20% down payment can be a challenging goal, especially for first-time homebuyers who aren’t using funds from a previous home sale. The good news is that many lending programs require much less. In fact, for first-time buyers, the average number is only 7%.

4. Document any down payment assistance.

Track where your down payment money is coming from so potential lenders can do the same. Make sure to accurately document if a family member or friend is providing financial help toward your down payment, and ask your lender about any local or state funded down payment assistance programs you may be eligible for.

Start your home buying process with confidence

Contact a loan officer today to determine your financing options.

1 “Buyer Bios: Profiles of Recent Home Buyers and Sellers,” Nov. 2, 2018, National Association of REALTORS®

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