For many months, first time buyers noticed that finding a home was a challenge. This is because supply was been very low and demand has been high. Besides that, realtor.com noticed that first time buyers reported a new challenge as their number one in August. In August, 35 percent of buyers on realtor.com said their biggest challenge was time, and they just started their search and were not quite ready to buy. Clearly, being a home buyer has several challenges- but they can be overcome. Realtor.com’s chief economist Jonathan Smoke compiled some tips for first time home buyers to help them be successful in the hunt for a home.
According to Smoke’s numbers, many people could use these tips. “The high number of those just starting to dip their toes into the market this year is related to a sizable shift toward first-time buyers. Last August, 35% of buyers identified themselves as first-time buyers. This August, the share of first-time buyers jumped to 51%,” he wrote.
- Get your finances in order: know your FICO score and strive for 700.
- Have an understanding of what you can afford. Know how much your downpayment would be and how much you could spend.
- Organize your financial records. This includes recent bank and financial statements, tax filings and pay stubs.
- Record any debt you may have from credit cards, car payments, student loans and whatever else.
- “Finally: Find a lender and get pre-approved. We still have very limited supply, so being pre-approved continues to be a key part of a successful buying strategy if you intend to finance a purchase with a mortgage. A pre-approval letter as part of an offer will communicate to the seller that you have the ability to close,” he wrote.
Hopefully these, tips for first time home buyers will help you if you fall into that category. With any other questions or need for advice, please contact our agents at RE/MAX Paradise. They will help you find a home in Miami today!