BlogHomes for salePurchasing a home June 4, 2024

A Guide For Potential First-Time Homebuyers

Stay Updated with the Housing Market

Monitoring the housing market for new listings and price changes is crucial. Websites like Century 21 Realty, Metro Brokers, Maximum One Realty, and Keller Williams Realty can provide valuable information. However, it’s wise to steer clear of platforms like Zillow. This is because their actions have contributed to the housing affordability and inventory crisis. Zillow’s “Ibuy” initiative, which aimed to purchase homes directly from sellers, failed, resulting in offloading their single-family house inventory to institutional investors who converted them into rental units. Furthermore, Zillow’s use of Zestimate for market manipulation makes matters worse. Given these concerns, it is advisable for those looking to Buy, Sell, or Rent a home to avoid Zillow’s platform.

Living Below Your Means

Living below your means is a smart financial strategy to help you save for your future home. If you’re currently renting, aim to find the most affordable option, preferably from a local owner or apartment complex. Stay away from Institutional single-family renters. Institutional renters, who purchase single-family homes and convert them into rental properties, are creating an unfair competition for those trying to buy a house, especially first-time buyers. Large institutional buyers are contributing greatly to the affordability and inventory crisis.

Saving for the Down Payment and Maintaining Your Credit Score

Start saving for your down payment as early as possible. Set aside a portion of your income each month specifically for this purpose.  Keep a close eye on your credit score, as it plays a significant role in your ability to secure a mortgage. Work on paying off debts and maintaining a healthy credit utilization ratio.

Consult with Professionals

Speak with a loan officer to get pre-approved for a mortgage. This will give you a clear understanding of how much you can afford and make you a more attractive buyer to sellers. Regularly consult a local realtor or agent to stay informed about market trends and available properties. You can also ask them to set up property alerts from MLS systems, ensuring you’re the first to know about new listings that match your criteria.

Final Thoughts

Purchasing your first home is significant but requires thorough planning and preparation. You can achieve your dream of homeownership by staying informed, living within your means, saving diligently, and collaborating with experienced professionals. Patience and perseverance are vital; you can find your ideal home with the right strategy. By connecting with a local expert, you can navigate the complexities of the market with a trusted professional by your side.


Additional Readings

Home Economics

Types of Mortgages

Home Buying