Applying for a first mortgage can be a daunting task for the potential first time home buyer. Most first timers do not realize just how much is entailed. Yet, according to many real estate agents, first time home buyers are driving today’s housing market.
Today’s housing market that is actually booming right now is the homes in the $ 90,000 to $ 150,000 range. The higher priced home buyers are not to be found and the lesser priced homes can’t seem to make enough of a profit. When a home comes on the market that is intended to sell for $ 100,000 it generally goes quickly.
The first time home buyer is no different than the more experienced home buyer in their specific requirements. Most buyers are looking for a home that is affordable, is in a good neighborhood and has the amenities that fit their lifestyle. Where the first time home buyer differs; however, is in the space desired. Most new home buyers are looking for added room and even extra room to grow into.
Many first time home buyers are finding their dream homes at prices they can afford from the number of homes that are being repossessed by banks. Many banks are finding they own many homes due to repossessions and are selling them cheap just to get rid of them according to one real estate agent with Coldwell Banker.
According to a broker-owner of Re/Max, foreclosures are aiding in the lowered house prices. It is this that helps the first time home buyer find the home they desire instead of the starter home that first time home buyers once purchased. When the housing market benefits the seller, the first time home buyers often can only afford the traditional “starter home”.
There are still challenges that the first time home buyer will face despite being a buyer’s market. There is much to learn and understand regarding the loan process that most first time home buyers are unaware of. The loan process is a fairly complicated process and even with good credit most first time home buyers have never had a loan of this scale before.
To help ease the confusion and often reluctance of the first time home buyer the loan officer and real estate agent come together to assist. Many people applying for home loans today can expect to be approved with a Federal Housing Authority loan at a 30 year mortgage with low interest rates.
For a myriad of locations and neighborhoods this is the best time in the last 10 years to buy a home. This is due to the housing prices being low and the interest rates still being good. The dream home of many potential first time home buyers is a real possibility with today’s market; making for a happy ending to a beginner’s story.
By claudioscott from Pixabay