Top 10 Things First-Time Home Buyers Should Know in 2018
The mortgage industry and real estate market over has changed a lot over the last few of years. Here are 10 thoughts to consider before buying your first home.
10 Things First-Time Home Buyers Should Consider in 2018
1. It’s easier to qualify for a mortgage loan.
Some first-time home buyers may be able to qualify for a conventional mortgage loan with as little as 3% down.
2. Debt limits have increased.
Mortgage loans could be easier to obtain than you think — particularly for those borrowers with higher levels of debt.
3. Home prices are rising very slowly.
Home prices are anticipated to rise by around 3.5% – 5% nationwide during 2018. This affects first-time home-buyers buying power.
4. Mortgage rates may creep upward.
Experts expect rates to climb during the second half of 2018. You should know about these trends and forecasts before you buy.
5. You don’t have to have 20% down to buy a house.
There are mortgage programs today that allow for down payments as low as 3%.
6. Inventory is limited in many cities.
In many local housing markets, there is not enough supply of houses for sale. In a market with limited inventory, sellers have more negotiating leverage.
7. FHA loans are more expensive.
First-time home-buyers who use the FHA loan program pay elevated mortgage insurance levels due to government policies.
8. Most home loans have credit scores of 600 or higher.
The majority (99.5%) of purchase loans went to borrowers with scores of 600 or higher. This not a requirement, rather it is an important industry trend in 2018.
9. It’s wise to have a real estate agent.
It’s wise to have a professional, experienced real estate agent. When you consider that typically the seller pays agent commissions, it just makes sense.
10. I can navigate first-time home-buying waters!
Send an email or give me a call and let's look at all your options.