What It's Really Like To Buy Your First Home: A Guide
According to Statista, "Approximately 82 percent of Americans aged 22 to 30 who bought a home were first-home buyers, whereas only just under half of the homebuyers between 31 and 40 bought their first home in that year." This means, unsurprisingly, most first-time homebuyers tend to be in the beginning stages of a budding career, taking higher-education courses, and trying to keep up with student loan payments.
Gen Z and Millenials have so much to juggle already, purchasing a house can feel like another stressor — but a little education about what it's really like to buy a house can simplify the process.
Take Advantage of First-Time Homebuyer Benefits
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Buying a home as a first-time homebuyer can be nerve-wracking, but your "first-time" status unlocks several perks. First-time homebuyers are eligible for loan programs, tax breaks, and assistance programs that are created to increase homeownership accessibility. You might even still qualify for first-time homebuyer programs, even if you've owned a home before. Don't neglect options created to help you on your journey to homeownership. Know your options.
First-Time Homeowner Loan & Assistance Programs
- FHA Loans - An FHA loan is a government-backed mortgage that is guaranteed by the Federal Housing Administration, but issued by private lenders. It's hands down the most popular loan option for first-time homebuyers since they have low down payment and credit requirements.
- USDA Loans - USDA loans are mortgage loans backed by the U.S. Department of Agriculture that make housing affordable in rural areas. Since they're government-backed loans, they can provide lower interest rates. On top of low-interest rates, borrowers don't have to pay a cent towards the down payment.
- Good Neighbor Next Door - The Good Neighbor Next Door Program was created by The U.S. Department of Housing and Urban Development (HUD) to strengthen communities by offering teachers, law enforcement, firefighters, and EMT's the ability to purchase homes at a reduced rate. Purchase HUD homes for 50 percent off the list price with a low down payment of $100.
There are several first-time buyer programs to choose from. Do your research to track down the option that fits your needs.
Address Your Financial Health
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Review Your Credit. Even though the average credit score for homebuyers in America is 731, most people can qualify for conventional loans with a credit score of at least 620. But, a lackluster credit score doesn't kill your homeowner dreams. You can still buy a home with bad credit if you know your available options.
Calculate Your Expenses. Mortgage payments can take up a good portion of your expenses, but living expenses can as well. It's hard to narrow down your list of potential homes when you don't know what you can afford long-term. Before looking for a home, sit down and calculate your living expenses. This can include an estimation of monthly car payments, student debt payments, entertainment expenses, retirement savings, and other regular commitments.
Check Your Current Savings. If you have savings tucked away, that still might not be enough since you have to consider upfront costs, long-term and closing costs. Trust and believe, you don't want money getting in the way of landing the perfect home and keeping that home in the long-term.
- Do you have enough savings to cover your down payment? If you're not financing your home using a program that eliminates a down payment, then it's important to know what you're expected to pay upfront when purchasing a house. Make your life easier and use a down payment calculator to estimate your potential costs, so you have the money prepared when you're ready to buy your brand new home.
- When purchasing a home, you have to consider if you can afford the home in the future as well. It's smart to have an emergency savings account that can cover at least 3 to 6 months of living expenses on top of savings that are specifically for the costs that come with purchasing a home.
Find A Home & Make An Offer
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Once you have your finances figured out, it's time to start searching for a fabulous home with all of the features you've envisioned in your head. The entire process of searching for a home can be overwhelming, which is why it will make your life a whole lot easier to hire a local real estate agent. And, homebuyers on the lookout can scour online listings or take a drive through your desired neighborhood to see if any homes are for sale.
When you've finally found a house that you'd like to call home, the only thing left to do is make an offer. If you choose to work with a real estate agent, your agent will help you to decide how much money to offer the seller in exchange for the home and any other conditions you want to put on the table. The real estate agent will present your offer and conditions to the seller's agent who will accept your offer or propose a counteroffer.
As the buyer, you can accept their offer or present your own counteroffer, and this process can continue until an agreement is made. Or, until one of the parties decides to opt out of the negotiation process.
Close On The Home
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If you get to this point, congrats! It's time to sign your name on the dotted line on several documents and cross your fingers that the deal doesn't fall through the cracks. This is the time to focus on closing costs which can include purchasing home insurance, getting a home appraisal, and any extra fees.
In 2020, the homeownership rate amounted to a striking 65.85 percent! Who knows, after exploring your first-time homebuyer programs, addressing your financial health, and finding your dream home, you could be a part of that large chunk of American homeowners.
You're armed with the tools to start your search for a home fit for a queen like yourself, so there's nothing between you and your homeownership goals now. Happy house hunting!
Featured image by kate_sept2004/Getty Images
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Aaliyah Sydonie Williams is a lover of pomegranates, intimate concerts, fluffy socks and all things R&B. She's a founder of a college advice blog, Her Little Corner, where she dishes helpful advice for college students to slay their college experience. When Aaliyah isn't eating at Starbucks, she's studying for her courses in finance, discovering new spots in the city, and brushing up on her photography skills. Keep up with her at Aaliyah Williams (@aaliyahsydonie).
ItGirl 100 Honors Black Women Who Create Culture & Put On For Their Cities
As they say, create the change you want to see in this world, besties. That’s why xoNecole linked up with Hyundai for the inaugural ItGirl 100 List, a celebration of 100 Genzennial women who aren’t afraid to pull up their own seats to the table. Across regions and industries, these women embody the essence of discovering self-value through purpose, honey! They're fierce, they’re ultra-creative, and we know they make their cities proud.
VIEW THE FULL ITGIRL 100 LIST HERE.
Don’t forget to also check out the ItGirl Directory, featuring 50 Black-woman-owned marketing and branding agencies, photographers and videographers, publicists, and more.
THE ITGIRL MEMO
I. An ItGirl puts on for her city and masters her self-worth through purpose.
II. An ItGirl celebrates all the things that make her unique.
III. An ItGirl empowers others to become the best versions of themselves.
IV. An ItGirl leads by example, inspiring others through her actions and integrity.
V. An ItGirl paves the way for authenticity and diversity in all aspects of life.
VI. An ItGirl uses the power of her voice to advocate for positive change in the world.
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Rihanna Talks Shedding Expectations And Finding Balance As A Mother
Since becoming a mother in 2022, Rihanna has defined parenthood by her terms and hopes to pass that sense of autonomy on to her children.
For Vogue China’s April cover story, Rihanna shared her perspective on raising her two sons with A$AP Rocky, and how she hopes to preserve her children’s uniqueness, devoid of societal expectations.
"The most beautiful thing...is that [children] come into the world with their own individuality and sincerity, without any logic or conformity,” she told the publication. “Which usually makes you feel that you must fit into a certain group."
The “Work” artist, known for her trendsetting style and captivating persona, expressed her desire to support children in fully embracing their individuality and encouraging them to be whoever they want to be. "It's really beautiful to see and I want to continue to help them navigate that and make sure that they know they can be whoever they want to be,” she says.
She continues, “They should embrace it completely, because it's beautiful, and it's unique. I love them just that way."
From shattering music charts to shaking up the beauty industry, Rihanna has forged a path that has since created the “dream” life we see today. One that she says has made her parents proud of.
“I’m living my dream,” she continued. “My parents were very proud of that because they just wanted me to be happy and successful. So, I think the key thing is to find some kind of balance. Yes, balance is important. Do this and you get the best of both worlds. You can write your own life the way you want, and it will be beautiful. Sometimes, you just need to let go of everyone’s expectations and start living your own story.”
Rihanna, who shares sons, RZA, 23 months, and Riot, 8 months, with rapper A$AP Rocky, recently shared her vision for expanding her family in the future in Interview Magazine.
When stylist Mel Ottenberg asked about the number of additional children she hoped to have, Rihanna replied, "As many as God wants me to have.”
"I don't know what God wants, but I would go for more than two. I would try for my girl,” she adds. “But of course, if it's another boy, it's another boy."
Featured image by Neil MockfordWireImage