Last updated on 04/09/2020
As some observers of the U.S. economy like to note, the U.S. is officially in its longest expansion ever, having broken our historic record of 120 straight months of economic growth over the summer. Consumer spending has been strong, while stocks flirted regularly with record highs most of the summer and into early fall. We also have the lowest unemployment rate in 50 years. In September 2019, the Labor Department informed us that unemployment, clocking in at 3.5 percent, had effectively achieved the lowest rate since 1969.
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Additionally, the housing market continues to grow this year. Low mortgage rates, job and wage growth are driving demand and enticing new players to get into the market. In fact, a large part of the new entries into the market are Millennials and first-time home buyers.
However, sometimes the road to homeownership can be complicated and being financially prepared is key. We’ve round up five articles to help prepare if you’re First Time Home Buyer:
- Some first-time buyers have owned a home @Dallas News
The definition of “first-time” buyer is more flexible than might be expected.
Q: In speaking with lenders, it looks as though there are advantages for “first-time” buyers. However, one lender said it was possible to have both owned a home previously and still qualify as a “first-time” buyer. Please explain.
A: It’s not unreasonable to think that a “first-time” buyer is defined as someone who has never held title to real estate.
For many Americans, the biggest hurdle in buying a home is the down payment. According to a recent report, 49% of non-homeowners stated that not having enough money for a down payment and closing costs was a major obstacle to purchasing a home. Many people also mistakenly believe lenders require a 20% down payment to qualify for mortgage financing.
Data shows that by using private mortgage insurance (MI), millions of homebuyers with down payments as low as 3% or 5% have been approved for affordable and well-underwritten mortgages.
In the past year alone, MI has helped more than 1.1 million borrowers purchase or refinance a mortgage. Nearly 60% were first-time homebuyers, and more than 40% had annual incomes below $75,000.
How MI works? Find out at Long View.
3. 8 First-Time Home Buyer Loans and Programs @NerdWallet
Buying a home is so hard, they should make it an Olympic event. It’s not just the paperwork; it’s the terminology, the fees and the number of people involved. It’s natural to want to agree to whatever, sign everything and just get through the process as fast as you can.
While that may make you a medalist in downhill skiing, it won’t earn you many style points in life’s uphill battle to financial well-being.
NedWallet listed some of the most useful first-time home buyer loans and programs that you might overlook if you rush the process. They may score you some big savings. Go check them out!
4. How to Avoid These 5 First-Time Homebuyer Mistakes @Credit.com
Buying a home for the first time can be a wonderful—and intimidating—experience. With so much information out there, it’s easy to feel overwhelmed. There are ways to streamline the process, both from an emotional and financial perspective. It’s also important as a first-time homebuyer to understand all the mistakes commonly made during the process and learn ways to avoid making them.
Common Mistakes Homebuyers Make
First-time homebuyers can make a few mistakes during the home-buying process. It’s no wonder. It’s their first home-buying experience. And it can be unclear of what needs done when. Credit.com explains a few of the more common mistakes new homebuyers make. Go check them out and walk into the process with a little knowledge on your side.
5. How Renters Can Prepare to Be Homeowners @Realty Bus News
Are you renting your home? When you first move away from home, you are more than likely to end up renting your first property. Most renters would like to become homebuyers but don’t have the financial capability just yet.
For many folks, the road to buying their first house is challenging. Day to day living is costly, and salaries don’t seem to have kept up with costs due to skyrocketing real estate values.
But, despite living costs, most renters set themselves the goal of becoming home buyers. There are many expenses attached to buying a home, and it is hard to afford things like the initial down payment.
Bank rates are at an all-time low, and it may feel like saving is a waste of time. However, unless you qualify for a no down payment loan, you will still need to put some money down. Saving for a down payment is the first step on the road to becoming a home buyer. Find out other steps at Realty Biz News.
Bonus: Here’s a link to show you State by state home buyer program; State-by-state home buyer programs
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