Strategic Tips for Buying Your First Home

Buying your first home is an exciting step and a major event that will improve your life. As a first-time homebuyer, it's a dream come true, but there are some challenges you'll need to overcome in today’s housing market, specifically the limited supply of homes for sale and ongoing affordability challenges.

So, if you're ready, here are three tips to help you turn your dream into a reality.

Save Money with First-Time Homebuyer Programs

Paying for the upfront costs of homeownership, such as the down payment and closing costs, can seem intimidating, especially for first-time buyers. But, don’t worry, there are many assistance programs available specifically for first-time homebuyers that can help relieve the financial burden. These programs often offer loans with lower down payment requirements and more flexible credit score criteria. According to Bankrate,

“you might qualify for a first-time homebuyer loan or assistance. First-time buyer loans typically have more flexible requirements, such as a lower down payment and credit score. Many help buyers with closing costs and the down payment through grants and low-interest loans.”

To explore your options, consider reaching out to your state's housing authority or researching online resources like Down Payment Resource.

Expand Your Options by Looking at Condos and Townhomes

Right now, there aren’t enough homes for sale for everyone who wants to buy one. That’s pushing home prices up and making affordability tight for buyers. One way to deal with that issue and find a home right now is to consider condos and townhomes. Realtor.com explains:

“For many newbies, it might just be a matter of making a shift toward something they can better afford—like a condo or townhome. These lower-cost homes have historically been a stepping stone for buyers looking for a less expensive alternative to a single-family home.”

One reason why they may be more affordable is because they’re often smaller. But they still give you the chance to get your foot in the door and achieve your goal of owning a home and building equity. And that equity can help fuel your move into a larger home later on if you decide you need something bigger in the future.

Hannah Jones, Senior Economic Analyst at Realtor.com, says:

“Condos can help prospective homebuyers who perhaps have a smaller budget, but who are really determined to get a foothold in the market and start to accumulate some equity. It can be a really great entry point.”

Combining Your Resources To Buy a Multi-Generational Home

In today's high-cost housing market, purchasing a home with friends or family members can be a strategic way to overcome affordability challenges. Pooling your resources allows you to combine incomes and increase your purchasing power, making homeownership more attainable.

Money.com highlights the advantages of buying a home with another person:

 “Buying a home with another person has some obvious advantages in the mortgage department. With two incomes in the mix, buyers can likely qualify for a larger mortgage — a big help in today’s high-cost market.”

Bottom Line

Navigating the housing market as a first-time homebuyer can be daunting, but with strategic planning and the right resources, you can successfully purchase your first home. Whether you explore first-time homebuyer programs, consider alternative housing options like condos and townhomes, or pool your resources to buy a multi-generational home, there are various paths to homeownership.

Call Teresa Ryan today, at 630-276-7575 for expert advice and guidance when you buy your first home in the Chicago suburbs!


Get a copy of our Home Buyer Guide written by Teresa Ryan for Chicagoland home buyers, visit: FREE Home Buyer's Guide

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