First Time Home Buyers -- Now is the Time to Buy Your First Home

There may never be a better time for first time home buyers to purchase their first home.  Sadly, many that can afford to purchase a home are going to miss out.  Why? All I have to do to get the truthful answer is to look back at our first home buying experience.  You see, like many we were renting, young, busy and thought that we couldn't qualify to purchase a home.  That was what we thought and believed, yet it wasn't true.  We thought we needed a lot of money saved up to qualify.  We knew of people that lived in their parent’s basements until they could save up $50,000 or more to make the 20% down payment on a $250,000 home.  These people were intelligent people, with great educations, so they must have known what they were doing, right?  Wrong!

So what is the truth today?  The short answer is that it depends who you are.  Are you a veteran?  If so, you don't need very much money at all (maybe as little as $1,000).  Are you an average person that has never served in the armed forces?  Good news for you too:  you need as little as 3.5% down under current FHA guidelines.  The truth is that many people just don't know what it takes to own a home.  It usually costs a lot less than they think.

So what should you do to find out if you can purchase a home?  First, find a Realtor you can trust.  This person will be able to advise you about how much you can afford and help you understand where you can live given what you can afford.  A good agent will ask you a lot of questions about your wants and needs, and will put you in touch with a lender to get preapproved prior to showing you just one house.  This is more important than a lot of people realize.  If you fall in love with a home and later learn that you cannot afford it, it is likely that you will have difficulty finding a similar home in a lower price range.  This can be very disappointing. Do not look for a home prior to contacting a Realtor.

The bottom line is that you should seek the professional services of a Realtor to determine if you can afford to buy in this market.  What you learn may surprise you and may lead to fulfilling your dream of home ownership.  Don't wait.  Interest rates are low and home prices are back in line with historical trends.  Don't wait for the media to tell you that the economy is improving.  By the time the media starts proclaiming the economy good, prices will have started to rise, interests rates will rise and many people will be priced out of the market.

Finally, if you have any questions, do not hesitate to contact me.