My advice to first time home buyer has always been this; your first home is just a stepping stone to your next home.
Build Equity Quick In Today’s Market
With the speed of the market right now, sometimes it’s not about looking to find that perfect home but to find a home that will work for now and a home that has most if not all of the qualities you desire in a home. I’m not implying to give up everything you want in a home and settle only to be miserable living there, but look at compromising on a few items if need to be.
For the first time home-buyer, their first home won’t be their last and defiantly won’t be their only home they buy but just the beginning of homes to come. Once you buy this first home, keep it maintained, maybe do a little upgrading here and there. The plan is to make the home better than when you first bought it, even if it is just minor upgrades.
The main goal is to buy a home in an increasing market and you will start to gain equity through appreciation almost immediately. In 2 to 5 years, depending on the speed of equity gain, you can sell the home and be able to buy up to a better, bigger home and maybe in a more desirable area and able to get that two car garage that you may of sacrifice on the first home.
With the equity in this current home you will be able to put more money down on the next and have more money for upgrades to the new home or just be able to put some away in savings.
You Don’t Need 20% Down To Buy
Most buyer’s, especially first time home buyers, may not have the funds for the down payment, so they may say why bother to try. With grant programs and assistant down payment program available, this really should not get in the way of home ownership.
The myth you need 20% down is just that, a myth. With these local down payments assistant programs available, not just first for time home buyers I might add, you can easily get into a home with little or no money down.
Get Off The Fence
Don’t be a fence sitter and wait for the perfect timing or that perfect house to come on the market or until you have 20% down saved up, get into the game before prices continue to increase and interest rates start walking upwards. Someone will reap the equity gain, why not you?
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