First-Time Home Buying Tips in the Digital Age
The Internet has forever changed the way we do things, from paying bills to shopping for a home. According to the National Association of Realtors’ 2022 Home Buyer and Seller Generation Trends report, the first place people go when searching for a home was online. No surprise there, right?
The study also found that first-time home buying among younger generations is on the rise, with more than four out of five younger millennial homebuyers purchasing for the first time. Just under half of the older millennial buyers were first-time buyers, which makes it even more important to understand the processes involved in purchasing a home.
There are resources available from the Consumer Financial Protection Bureau (CFPB) and the Federal Deposit Insurance Corporation (FDIC) to help buyers better understand the home-buying process. First-time homebuyer education is available with many housing agencies free of charge. A few include:
Even those resources don’t make it easy and may not steer you in the right direction to meet your unique financial needs.
With all the education available, it’s sometimes difficult to understand. Everyone has a unique financial situation when it comes to home buying. Here are a few tips to get you started:
- Create a budget. Analyze where you can trim expenses to start or continue saving for a down payment. Use one of the many online calculators to see how much home you can afford.
- Know your credit score. The better your credit score, the better your interest rate. Once a year, you can get a free copy of your credit report from any of the credit bureaus, as well as https://www.annualcreditreport.com.
- Make sure you have an established credit history. If you don’t have a history of credit, now is the time to get started. If you don’t already have a credit card, apply for one and use it responsibly. Pay the balance in full each month to establish a good credit pattern.
Buying your first home is a big deal, so naturally you may feel overwhelmed. We have a team of experts that can help guide you through the entire process. They will be able to help you determine what you can afford and even when is the right time to buy. If you aren’t quite ready to take the plunge, we can help you establish a budget and set financial targets, so that when the time is right, you’ll have the tools you need to secure the keys to a home of your own.
For more information about our mortgage options, visit our mortgage center.