From a quick market analysis, what we’re seeing at the national level in 2021 shows that although the inventory on actual houses remains low, the median home price continues to rise month-over-month expecting the sales price increase to be up 4% from last year. For first-time home buyers, the pot won’t be getting much sweeter, and NOW is the time to invest. Gen Xers and millennials are the primary generations buying homes, and we are noticing a variable grouping between the younger buyers and older buyers.

What is most important to both younger and older buyers is the turnkey capabilities of their first homes. The preference for newer houses needing fewer repairs and improvements is agreed upon across all ages with their focus on having enough in savings to take on maintenance costs. However, the trend we’re noticing that Business Insider reported is older, financially successful first-time homebuyers are stepping into million-dollar forever homes instead of the traditional “starter homes” that the younger buyers are seeking. According to the Washington Post, younger homebuyers prioritize their searches for pet-related, entertainment, and leisure activities while the older buyers are looking for neighborhoods that are more family-friendly and accommodating to children that they might already have.

Regardless of what sort of home you’re after, jumping into real estate can be daunting for a first-time home buyer, even more so in a competitive market. We have compiled 4 excellent tips to help you maneuver your way into your first home as smoothly as possible!

1. Save, Budget, and Check Your Credit Strength: this one is probably the most obvious in the home buying venture, but the stronger you go into buying a home financially, the better you will be in the long run. Your credit score and debt-to-income ratio are huge to financial lenders and a healthy credit score will mean greater pre-approval. To find out how much you can afford on the mortgage front, it’s best to work backward with your monthly budget to see how much wiggle room you have. Lastly, the downpayment you intend to put down with a lender will affect the amount lenders can give you when applying for a loan - so save, save, save!

2. Finance For What Fits You: buying a house is not as simple as taking out one big loan and paying it over time. Buying a house or two might be the biggest investment you will ever face in your lifetime! No two buyers are ever the same and luckily there are many many options out there that could be your best fit. Shop around to find what’s best for you, whether it is conventional financing, an FHA loan, VA loan, or USDA loan, there’s something out there for you.

3. Know What, Where, and When: even in a limited inventory market, there is a plethora of different housing available. Knowing the difference between a townhouse, a condo, and a single-family home is a great start to knowing what you will want out of your house. Location will be one of the biggest factors when it comes to buying your first home, as it will affect the sales price, your commute time, and property tax. The best advice we can give you in this post is knowing when you are ready to buy a house depends on how well you have your ducks in a row! GET PRE-APPROVED from your lender with your downpayment ready to go and be prepared to make offers on the same day you see your potential new house. With the fast-paced and aggressive market, being pre-approved will make a world of difference when it comes to getting your offer put in as fast as you can.

4. Use A Real Estate Agent: you can read as much as you can when it comes to buying a house, OR you can work with a real estate agent who knows all the ins and outs of the industry like the back of their hand. Having an agent in your corner representing you protects you in so many ways, for more info, read up on Reasons to Hire a Real Estate Professional.

When you are ready to make your move, ERA Landmark wants everything to go well for you on your journey to buying your first home. It’s a big step in life, entering into homeownership, and we have the expertise to get you there! Check out our different offices closest to you where any of our able agents can help you get started today!