{"id":2283,"date":"2021-12-14T16:44:55","date_gmt":"2021-12-14T16:44:55","guid":{"rendered":"https:\/\/phphouses.com\/blog\/?p=2283"},"modified":"2021-12-14T16:44:55","modified_gmt":"2021-12-14T16:44:55","slug":"advice-first-generation-homebuyers","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/advice-first-generation-homebuyers\/","title":{"rendered":"Advice for First-Generation Homebuyers"},"content":{"rendered":"
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Advice for First-Generation Homebuyers<\/p><\/div>\n

The sense of pride you\u2019ll feel when you purchase a home can\u2019t be overstated. For first-generation homebuyers, that feeling of accomplishment is even greater. That\u2019s because the pride of homeownership for first-generation buyers extends far beyond the homebuyer. AJ Barkley, Head of Neighborhood and Community Lending for Bank of America<\/em>, says<\/a>:<\/p>\n

\u201cAchieving this goal can create a sense of pride and accomplishment<\/strong> that resonates both for the buyer and those closest to them, including their parents and future generations.\u201d<\/em><\/p><\/blockquote>\n

In other words, your dream of homeownership has far-reaching impacts. If you\u2019re about to be the first person in your family to buy a home, let that motivate you throughout the process<\/a>. As you begin your journey, here are three helpful tips to make that dream come true.<\/p>\n

1. Reach Out to a Real Estate Professional <\/strong><\/h4>\n

It\u2019s important to reach out to a trusted advisor early in your homebuying process. Not only can an agent help you find the right home, but they\u2019ll serve as your expert advisor and answer any questions you might have along the way.<\/p>\n

The latest Profile of Home Buyers and Sellers<\/em><\/a> from the National Association of Realtors<\/em> (NAR) surveyed first-time homebuyers to see how their agent helped them with their home purchase (see chart below<\/em>):<\/p>\n

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How Real Estate Agents Help First-Time Homebuyers<\/p><\/div>\n

As the graph shows, your agent is a great source of information throughout the process. They\u2019ll help you understand what\u2019s happening, assess a home\u2019s condition, and negotiate a contract that has the best possible terms for you. These are just some of the reasons having an expert in your corner is critical as you navigate one of the most significant purchases of your life.<\/p>\n

2. Do Your Research and Know What You Can Afford<\/strong><\/h4>\n

The second piece of advice for first-generation homebuyers is practical: do your research so you know what you can afford. That means getting your finances in order, reviewing your budget, and getting pre-approved<\/a> through a lender. It also means learning the ins and outs of what it takes to pay for your home, including what you\u2019ll need for a down payment.<\/strong><\/p>\n

Many homebuyers believe the common misconception that you can\u2019t purchase a home without coming up with a 20% for a down payment. As Freddie Mac<\/em> says<\/a>:<\/p>\n

\u201cThe most damaging down payment myth\u2014since it stops the homebuying process before it can start\u2014is the belief that 20% is necessary.\u201d<\/em><\/p><\/blockquote>\n

The chart below shows what recent homebuyers have actually put down on their purchases:<\/p>\n

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Today’s Median Down Payment<\/p><\/div>\n

On average, first-time buyers only put 7% down on their home purchase. That\u2019s far less than the 20% many people believe is necessary. That means your down payment, and your home purchase, may be in closer reach than you realize. Keep that in mind as you work with a real estate professional to better understand what you\u2019ll need for your purchase<\/a>.<\/p>\n

3. Don\u2019t Lose Sight of What Home Means to You<\/strong><\/h4>\n

Finally, it\u2019s important keep in mind why you\u2019re searching for a home to begin with. Overwhelmingly, first-generation homeowners recognize the financial<\/a> and non-financial<\/a> benefits of owning a home. In fact, in a recent survey<\/a>:<\/p>\n