Tips for young homebuyers entering the market

 

June 16, 2011

 

Though many young people may be more likely to consider an apartment for their first post-education home, the National Association of Realtors (NAR) reports some may be intrigued with the possibility of buying a home. Young home buyers focused on their career and relationships may want to buy a home to keep them grounded, but according to NAR, it is important for them to consider the following steps when they look to become a first-time home buyer.

 

 

Some first-time home buyers may not have built up much of a credit history yet, which can make it difficult to qualify for a home loan, reports NAR. Workshops from credit counseling services can help young home buyers get their credit in order before they seek financing. In addition, significant cash reserves will be beneficial to first-time 

home buyers because it will help them afford a down payment and closing costs, according to NAR. Some government and non-profit programs also offer down payment and closing cost assistance, while some lenders allow financial gifts from relatives to be used for a down payment.

 

NAR reports first-time home buyers should also learn what they can about the duties of homeownership. Learning the ins and outs of owning a home through books, the internet and consumer resources can give first-time home buyers some idea of what to expect before they make a home purchase.

 

 

First-time home buyers should also have an idea of where they would like to live, NAR reports. Whether they want to live close to their parents or intend to move away for work, researching locations and getting a feel for the local housing market can let first-time home buyers know how much they will have to spend to buy a home. It might also allow them to prioritize their wants and desires when it comes to an ideal 

location, giving their real estate agent a starting point when it comes time to look for a property to buy, according to NAR.

 

 

Finally, the right representation can make all the difference when a first-time home buyer is ready to purchase a home. A good real estate agent can make home buying easier for even the most seasoned homeowner, but they are especially helpful for first-time home buyers who have never entered the market, according to NAR. A real estate agent can point a home buyer in the right direction from the very start, letting 

them know how much they can expect to pay for properties in their area, advising them on the benefits and challenges of homeownership and preparing them for their first property.