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A home purchase will bring you a sense of pride that can’t be described. First-generation homebuyers feel an even greater sense of accomplishment. This is because the pride of homeownership for first-generation homebuyers goes beyond just the buyer themselves. Bank of America’s Head of Neighborhood and Community Lending, AJ Barkley, says:
“Achieving this goal can create a sense of pride and accomplishment that resonates both for the buyer and those closest to them, including their parents and future generations.”
Your dream of owning a home affects a lot of people. As the first family member to purchase a home, be inspired by that and let it help you through the process. These three tips will help you achieve your dreams as you begin your journey.
1. Reach Out to a Denver Real Estate Professional
When you consider buying a home, it’s essential to speak with a trusted advisor early in the process. A real estate agent will not only help you find a home, but they’ll also serve as your expert advisor and answer any questions you might have.
According to NAR’s latest Profile of Home Buyers and Sellers survey, first-time homebuyers were surveyed to discover how their real estate agents assisted them with their purchase (see chart below):
This graph illustrates how crucial your agent is to the process of buying your first home. Ultimately, they will assist you in understanding the process, assessing the house’s condition, and negotiating a contract that will let you get the best terms and price. As you embark on one of the most significant purchases of your life, having an expert working for you is critical.
2. Do Your Research and Know What You Can Afford
My second piece of advice is practical for first-generation homebuyers: Research your budget so you know what you can afford. You’ll need to examine your finances, create a budget, and get pre-approved by a lender. Learning about the ins and outs of buying a home, as well as what your down payment will be, is essential.
A common misconception among first-generation homebuyers is that you cannot buy a home without putting 20% down. Here’s what Freddie Mac says:
“The most damaging down payment myth—since it stops the homebuying process before it can start—is the belief that 20% is necessary.”
Below is a chart showing what recent buyers put down on their purchases:
First-time buyers typically put down only 7% of the purchase price. A lot less than the 20% many people think they need. You may be closer to making your down payment and purchasing your dream home than you expect. So keep that in mind when working with a real estate agent to figure out what you’ll need to buy your first home.
3. Stay Focused on What Home Means to You
The last thing you should remember is why you are looking for a home in the first place. Most first-generation homeowners realize the benefits of owning a home, both financial and non-financial. Recently, a survey found that:
In fact, 73% of first-generation homeowners say the safety and security homeownership provides is increasingly important to them.
A little more than two-thirds of first-generation homeowners believe it is becoming increasingly important to build equity in their homes.
According to AJ Barkley:
“For many first-generation homeowners and their families, homeownership has a unique importance, given the collective efforts to overcome financial challenges that can often span generations…”
For first-generation homebuyers, being prepared and partnering with an expert is crucial to realizing your dream. Getting started on your journey to homeownership can be as easy as connecting with me today.
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