01/18/2022
Below is a question I received from my initial post, which lead to this page. This question is a great one, so I wanted to share. I am also sharing my 3 suggestions on what buyers can do. If anyone has any additional suggestions please share, I know home buyers would love the help.
Q: With home prices so inflated, how are new home buyers supposedto be able to afford a home?
My 3 suggestions
(1) Banks and Lenders have some great home buyer programs. The lender that I refer my clients to has ahome possible & home one program, for 1st-time buyers, that offer great rates (currently the same % as 30 yr fix) and a 97% loan. USDA loans are also great programs for our area, however, not all homes qualify.(2) I also recommend, ALL buyers workout a monthly budget with a new monthly mortgage, for 1st-time buyers $1,500 is a good estimate. Start using this budget right away, even before you buy, as it will give you an idea of what it’s like to live with this payment. When you do this, you also build up you’re saving or down payment as you can put the extra funds into a savings acct. For example, if you budget $1,500 for a monthly mortgage, but your current rent is actually $1,000, deposit $500 a month into a savings account or pay down a credit card.(3) All buyers to work on credit score by ensuring credit cards are at a max of 30% usage. A stronger credit score gives you more options and better interest rates.
