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Friday, September 27, 2013

Top first time homebuyer pitfalls to avoid

By Kirk Chivas

Realtors, mortgage professionals and homebuilders are alike in asking themselves the same question: “Where are all the first time homebuyers? Even with the housing market recovering at a good pace and home values continuing to grow, homebuilders profits are being held back by a lack of first time homebuyers in the market. Usually averaging 40% of the home buying market, first time homebuyers only comprised 28% of homes purchased in August of 2013.

There are a lot of variables in play as to why so few young adults are opting to rent or live at home instead of purchasing a home. Mortgage guidelines are not working in their favor, often finding issues with their lack of credit or funds available as well as high debt to income ratios from student loans. Who can blame them for being hesitant of owning a home after watching what their parents and family members went through a mere 5 years ago?

Buying a home is not impossible however, and it is still a good time to enter the market. The key to making this a successful journey is being prepared and knowledgeable about the steps ahead. First Commerce Financial, a mortgage broker based in Michigan, has provided an infographic detailing the top first time homebuyer pitfalls to avoid.

Check this list out to help prepare you for the path to homeownership. Remember, the most critical thing you can do to help yourself when buying a home is to keep open communication with your Realtor and Mortgage Lender. They will assist you in navigating these waters and getting prepared for all the hoops to jump through. 

Fewer property buyers in the real estate market is holding back homebuilder profits
Communication with Realtors and lenders is vital in the real estate purchase process

About the Author:  Kirk Chivas is a licensed Loan Officer and co-owner of First Commerce Financial, LLC, a mortgage brokerage based in Wixom, Michigan.  With over 17 years of experience, Kirk has committed to providing Michigan residents with accurate and honest mortgage advice.  If you have any questions about your current or future mortgage needs, please feel free to ask Kirk a question over on his Twitter.