The housing market has been a hot item in the media lately as home prices have been rising steadily the past year or so. This is a big deal considering just a few years ago during the recession, home values were going down the drain in record fashion. Yet now that the market has strengthened and stabilized, there are a record low number of first time homebuyers in the market. Why aren’t more folks buying back into the idea of becoming homeowners?
Let’s take a look at the typical first time homebuyer demographic. Most people buying their first home are in their 20s, more commonly known as Generation-Y. Often, this group is ravished with student loan debt and other monthly expenses such as new car payments and smartphones. Driving a beat up old car and having a free flip-phone apparently is a thing of the past!
Despite the budget challenges for many prospective first time homebuyers, most simply are not prepared to buy a home and do not know what they are getting themselves into. Getting a mortgage for a home is a much more difficult process than it used to be with numerous ways you can kill your chances of getting qualified.
Take a look at the Infographic below that details the 12 most common pitfalls first time homebuyers need to avoid. The one key idea behind all of these problems is they are all solved with good, open communication. When you being to think you’re ready to buy a home, you need to keep clear and open communication with both your Realtor and Mortgage Lender. Follow these tips and avoid the common problems to be well on your way to the joys of homeownership.
Created by First Commerce Financial.
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, please feel free to ask Kirk a question over on his twitter.