First Time Buyers Guide Investing Purchasing House

By
Real Estate Agent with HomeStarr Realty RS143922A

People are complaining about interest rates and this makes me laugh. Well not funny if you are using credit cards as there you may see a rise in your payments but the housing market is not a horrible market. 

Looking back I remember a time when Interest rates were 18 and 19 percent now that was a difficult market. People who purchased houses paid high-interest rates but when the rates came down their property values went up significantly. 

There are always alternative financing options. If you are a first-time home buyer you most likely will not stay in the house you are purchasing for more than 5-7 years. Your needs will change and you will outgrow the house. Looking into a good adjustable mortgage may be a good way for you to go. You may think that this will be the house you are going to stay in forever chances are you will not.

This brings me to this theory. First-time home buyers often think they will get the house of their dreams the first time out. In my opinion, many buyers cannot afford the house of their dreams the first time around and need to settle for practical. That is a home and an investment. A place they can call home to live in and be happy for three to six years. They will build equity in this house to then move again. 

The next time the house may be the house of their dreams and have everything they wanted or may yet be another stepping stone to the perfect dream home. We all need to set goals for what we want in life. They do not just happen. We need to work to make them happen.  

Really the first step in making it happen is to find a mortgage broker the best time to do this is before the home search many buyers look before they leap. They think they can afford the house because they like it.  When they see the monthly payment they realize they cannot afford it or are not comfortable with the payment. There is nothing worse than this disappointment. It is best to work with someone your agent has a good rapport with and knows will do a good job for you so it is a good idea to discuss with your Real Estate agent and ask if she/he knows a good mortgage broker this way everything will go smoothly for you. There will be good communication between all parties in the transaction. This way everyone will be happy and the deed will be signed and keys exchanged.

 

   

Posted by

Hannah Williams is known throughout Philadelphia as HelpfulHannah – and if you’ve spent more than five minutes with her, you know exactly why. She’s an expert at anticipating people’s needs, she has a real feel for real estate, and she’s an accomplished problem-solver.

Hannah has been helping people buy and sell homes all over Philadelphia since 1984. Many of her clients purchased their first, second and even third homes with her expert help, and Hannah wouldn’t have it any other way.

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Comments (22)

Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Hannah - there never appears to be the right time.  Yesterday would have been better than today but today is better than tomorrow.

Sep 29, 2022 06:51 AM
Hannah Williams

Grant Schneider  I heard Zillow on the news today it was very interesting but to be honest I really did not agree 

Sep 29, 2022 06:54 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Hi Hannah... people should think about not wasting money on rent, building equity, etc.... then they can use that equity to look for a dream home one day in the future.

Sep 29, 2022 06:53 AM
Hannah Williams
HomeStarr Realty - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-820-3376

Nina Hollander, Broker  My thoughts exactly a first -time buyer needs stepping stones. Not many buyers may come into the marketplace and buy the home of their dreams the first time. They need to invest in their future so that they may set their goals for their dream home  

Sep 29, 2022 06:58 AM
Nina Hollander, Broker

Hannah Williams I always tell my own clients that unless their name is Bill Gates and money is no object they will need to compromise on something in any price point.

Sep 29, 2022 07:03 AM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Great information.    Thanks for sharing and enjoy your day!

Sep 29, 2022 07:07 AM
Hannah Williams

Kristin Johnston - REALTOR® Good to see you and thank you ! Have a Wonderful Day 

Sep 29, 2022 07:16 AM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Hannah - in many ways real estate is "now".   While the past plays a part, the future can't be dismissed.   Maybe it's the combination that matters most. 

Perfect doesn't exist, hopefully we do the best we can with the tools we have available at the moment.  In real estate and in everyday life.  

Sep 29, 2022 07:26 AM
Hannah Williams

Michael Jacobs Very well said as always. In the market that just passed which was a whirlwind, I feel better helping a first-time buyer even with higher rates. Happy Thursday 

Sep 29, 2022 07:40 AM
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

Great points Hannah. Why not get into the market with a home that you can handle at first, and then move on to your "Dream" home!

Sep 29, 2022 07:27 AM
Hannah Williams

Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400 The market seems to have calmed down and buyers can now have more reasonable terms  as a buyers agent I now feel more comfortable becoming one once again 

Sep 29, 2022 09:14 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Hannah, you so nailed it, buying your first home, most likely won't be your DREAM HOME.   You have to build equity to get into the move-up home.

Sep 29, 2022 08:08 AM
Hannah Williams

Joan Cox It takes steps which most of the time buyers do not realize but learn quickly - Happy Thursday 

Sep 29, 2022 09:15 AM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Hannah Williams - In the late 1970s interest rates were high 10s and continued to get higher. When they finally came down due to 7 percent in the late 90s, then 5 in 2002, many refinanced and paid off their homes quicker. Rates have increased but they are still much lower than double digits. 

Sep 29, 2022 08:26 AM
Hannah Williams

Patricia Feager, MBA, CRS, GRI,MRP I do believe in the late seventies I paid 15% for my 2nd house and thought I had a deal as rates were 18 &19 % later we discovered we had a pre-payment penalty if we paid it off early. What did we know we were young and that was when I decided to get into Real Estate 

Sep 29, 2022 09:19 AM
Patricia Feager, MBA, CRS, GRI,MRP

Hannah Williams - my first house in IL was purchased, closed, and funded on the last day in July, 1979 and my interest rate was 10.5%. On the Monday after the rates went up and we thought we were so lucky and grateful. 

Sep 29, 2022 09:50 AM
Nick Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtor, Philly Main Line

Great advice in your post. Yes, many first time buyers have to adjust as they search and realize their dream home may be a little later in life, now is about finiding the right home for this stage of their lives.

Sep 29, 2022 08:33 AM
Hannah Williams

Nick Vandekar, 610-203-4543 Now is a wonderful time in their life to find a home, isn't it?  They can safely put in a home inspection without worrying that there will be ten other offers behind them. 

Sep 29, 2022 12:57 PM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Hannah and Thank You for your great information you share with us here in the Rain.  Make it a great day!

 

Sep 29, 2022 09:38 AM
Hannah Williams

Will Hamm Happy Thursday hope you have a wonderful day also 

Sep 29, 2022 12:55 PM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Hannah when I purchased my home in 1981 the interest rates were 15% and went up to 19% before coming down.

Sep 29, 2022 03:22 PM
Hannah Williams

George Souto The great thing about that was when they did come down again the house values increased.

Sep 30, 2022 01:55 PM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Hannah,

I don't think anyone could have stated it any better.  I went through this in the '80s.  My loan was in the 12% range!  YIKES!  But that house increased in value to help me purchase an even bigger home in 1988!

Sep 29, 2022 06:33 PM
Hannah Williams

Sheri Sperry - MCNE® Higher interest rates should not scare buyers away from buying. What buyers should be looking at is their PITI. In simple language, they should be sure they can afford their monthly payment with everything included - Principle payment - interest - taxes and insurance

Sep 30, 2022 02:00 PM
Richard Weeks
Dallas, TX
REALTOR®, Broker

Great information, thanks for sharing.  I hope you have a great day.

Sep 30, 2022 02:26 AM
Hannah Williams

Richard Weeks  I hope you also have a great day and a wonderful weekend 

Sep 30, 2022 02:02 PM
Roy Kelley
Retired - Gaithersburg, MD

Prospective home buyers are in very good hands when they seek your professional real estate advice and assistance.

Sep 30, 2022 05:14 AM
Hannah Williams

Roy Kelley The media is throwing a scare into buyers and also sellers and that is very sad as this is a perfect time to buy in my opinion.- Have a wonderful weekend 

Sep 30, 2022 02:04 PM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Hannah- you made an excellent point!!!   I know when we bought our first home we knew that our plan was to be there for a few years only!!! i'd imagine that very few people stay in their first home forever. 

Sep 30, 2022 10:37 AM
Hannah Williams

Kathy Streib most young couples' circumstances change as do their incomes. By investing in a home instead of renting they may accumulate equity in a few years and move up to a more expensive house. Time moves faster than they realize.

Sep 30, 2022 02:13 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

I fully remember that when I was first became a Realtor in November 1981. The interest rates were 18 1/2%/

Sep 30, 2022 07:40 PM
Hannah Williams

Myrl Jeffcoat It was shortly after this that I decided to become an agent. The agent I used did not listen to my wants or needs. He continued to take me to an area that he liked. It ended up that we purchased a For Sale by Owner in a Community we wanted.

Oct 03, 2022 11:50 AM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

CONGRATULATIONS Hannah, on having this blog FEATURED in the Old Farts Club group!  

Sep 30, 2022 07:41 PM
Hannah Williams

Thank you so much, Myrl Jeffcoat it feels so good to be appreciated 

Oct 03, 2022 11:51 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

The big difference is that home prices were much lower back in the 80's. We were thrilled to get in at 10% with no points, but our new 3 bedroom, 2 bath home on 5 acres was only about $60,000.

Oct 04, 2022 08:48 AM
Hannah Williams

Marte Cliff,  Yes most people had an income at a very different level also. The cost of living was very different also . The changing times. I think my townhouse in the '80s cost $55,000 it now sells for over  $300,000 

Oct 04, 2022 12:21 PM
Caroline Gerardo
Licensed in 20 states - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

My first home loan was 13.95% - The house needed lots of work. It wasn't our dream but it started something wonderful.

Oct 04, 2022 02:52 PM
Emily Medvec
eXp Realty LLC - Santa Fe, NM
Broker | Realtor | Serving Santa Fe & Northern NM

Great reminder blog Hannah Williams to lst Time Homebuyers! Focus on the future and there are always alternatives!

Oct 07, 2022 09:23 AM