First-time homebuyers are often overwhelmed by the home financing process, and who can blame them? Nearly 1 in 3 first-timers (29%) who eventually obtain a mortgage fail to get approval at least once while applying for financing. 

New buyers generally have more difficulty than repeat buyers, who are often older and able to tap resources that may include proceeds from the sale of their current home. Still, what first-timers lack in experience and resources, they make up for in determination and a willingness to compromise, according to the Zillow Group Consumer Housing Trends Report 2018. 

As you begin the process of purchasing your first home, here are some important details to consider. 

Down Payments: What They Are, and Where to Find Help 

Coming up with the down payment is the biggest hurdle: 27% of first-time buyers say it was difficult or very difficult, compared with 19% of experienced buyers. Many first-timers who obtain mortgages get payment help like gifts or loans from family & friends, and about half rely on two or more sources for their down payment. 

If you would like further assistance on financing a down payment on your home, consider asking a Realtor or lender about programs that provide down payment assistance or cover parts of your closing costs. 

Mortgages: Getting Pre-Qualified 

First-time home buyers are more likely to purchase a home with a mortgage (85% versus 69% of repeat buyers) and more than half of first-time buyers contact two or more lenders for a variety of reasons including a denial by a lender, worry, or simply rate shopping. 

We encourage you to get pre-qualified before you even begin looking at houses. Realtors on our team and our lender friends can brief you on the lending process and documentation you’ll likely need. 

Shopping for a Home: Cast a Wide Net 

First-timers overwhelmingly prefer single-family homes, but they’re more willing than repeat buyers to consider distressed homes, including foreclosures (25% versus 21%) and short sales (19% versus 14%), and they are more likely to say they hope to buy townhomes (13% versus 8%). 

If you’re not quite sure what you want or need in a home, it’s best to cast a wide net and evaluate a variety of different types of homes in your budget. Careful thought and consideration can eventually get you into the perfect home for you and/or your family. 

In the end, having a strong support system and ample research can make the home-buying process considerably more smooth. If you’re a first-time homebuyer who is unsure of where to start the process, the experienced agents of The Dallas-Fincham Team are happy to connect you with the best possible professionals to guide you through the process of buying a home. Reach out to us to go over your housing needs today! Because who you work with matters.