In 2013, 38 percent of home buyers were first-time buyers. Because first-time buyers can face unique challenges that other buyers may not, Supreme Lending and United Real Estate have partnered together to assist more people in achieving the dream of home ownership.
The statistics on first-time home buyers.
First-time home buyers tend to be young adults with an average age of 31. Around 56 percent of first-time buyers are married and 30 percent are single. The majority of first-time buyers, 59 percent, don’t have children. They tend to purchase homes around 1,570 square feet, and they have an average income of $64,400.
Specific challenges first-time home buyers face.
Did you know:
- The average age range for first time home buyers is 25-35, which also happens to be the age group hardest hit by the recession. This means that they may still be building their careers or do not have the employment history that older buyers do.
- Credit scores can also be a challenge for first-time home buyers because they may not have the long, established credit histories lender look for.
- Down payments can be a problem for first-time home buyers. Some lenders require first-time buyers to put down 10 to 20 percent of the purchase price of the home, which can be difficult to come up with when the buyer might be just starting in their career.
- Many buyers in this age group are also dealing with paying back substantial student loans. Having student loans can significantly impact the approval and even size of a home loan.
- It’s their first time. Many first-time buyers are simply overwhelmed by the home buying process. This can result in them agreeing to a term or percentage without really knowing what it means for them or giving up the process entirely.
What you can do:
- Make a list of must-haves and nice-to-haves. Buying a home can be an emotional experience, but it is important to try to put emotions aside and focus on finding a house that has what you’re looking for AND you can afford.
- Take ALL of the expenses into consideration when deciding on your budget. Don’t forget to add in utilities, cost of commuting, insurance and other fees.
- Read the homeowners association contract before you put in an offer. It could have conditions that make or break your decision.
- Ask for help! You don’t have to go through the process alone. Make sure that you choose loan officers and real estate agents who are dedicated to making the process as simple as possible.
Questions for us? Email firstname.lastname@example.org or call (877)316-0296
NMLS ID #2129
14801 Quorum Drive, Ste 300
Dallas, Texas 75254