It looks like it may be time to make way for first-time buyers. According to the National Association of Realtors, purchases by first-time home buyers reached a four-year high in September at 34% of sales, and millennials are expected to strengthen home and condo sales into 2020.
Dunn & Bradstreet reported that rents will keep getting higher and that increasing rents is one of the biggest factors for first-time buyers who decide to buy.
These reports make it sound like it’s a great time for first-timers to buy, but the reality we see all the time is that many millennials aren’t close to being ready.
Case in point, we recently met with a young couple who are working professionals pulling down six figure salaries. But because they are saddled with huge student loans, the reality for them is that they aren’t ready to take on a mortgage and will have to rent while they continue to save.
If you want your share of the American dream and own your own home, you have to create a plan for getting there. The first step is to understand your current financial situation.
The Michael Edmond Team is willing and able to help.
If you are a millennial with your eye on the prize, or your son or daughter is in that age group, we can show you what’s going on in the varied housing markets throughout Westchester and open your eyes to the little-discussed financial factors such as taxes, maintenance, and insurance.
We can also connect you to other experts who we trust and work with all the time who can help you avoid a lot of mistakes common to first-timers.
For example, we turned to one of our favorite mortgage experts, Shawn Conley, for his thoughts on becoming a first-time home buyer.
“Getting pre-approved for a mortgage is a key first step,” Shawn said. “Pre-approvals are particularly useful because they identify you as a serious buyer, determine your actual budget, and confirm your credit rating.”
Sean also shared some important “Do’s and Don’ts” for first-timers to the mortgage process:
Continue to stay current on your rent payments.
Continue using credit as normal and stay current on all accounts.
Follow the correct procedures on gift money. Gifts should be from a relative.
Apply for, open, close, or max out any credit card accounts.
Make a major purchase.
Consolidate your debt onto one or two credit cards.
Change bank accounts or transfer balances from one account to another.
To reach Shawn Conley, Mortgage Loan Originator with Loan Depot, call 914-708-1089.
If you would like the Michael Edmond Team help you succeed as a first-time home buyer, give us a call today at 914-437-6292.
For 2017, the Team goal is to help over 100 local families make their real estate dreams come true. We need YOUR help and your referrals to get there. Please refer your friends, families, and neighbors to the Michael Edmond Team 914-437-6292. Also, text “MET” to 59559 to get more info on our listings and others sent directly to your phone!