2023 was a notable year for the housing industry. While the inventory of available homes remained limited, purchases steadily increased during the year. Now, as we head into 2024, prospective homebuyers are eager to take advantage of declining mortgage rates. Below, we’ve shared some tips for buying your first house in 2024.
Navigating the 2024 Housing Market as a First-Time Buyer
Entering the housing market as a first-time buyer in 2024 requires a strategic approach. Here are several tips and pieces of advice to navigate this market:
1. Budget Wisely
The first thing that you’ll want to do is gain a thorough understanding of your finances and start planning. When calculating your budget, factor in not just your mortgage payments but also property taxes, insurance, maintenance, and any homeowner’s association fees.
Use online mortgage calculators to estimate your monthly payments at different interest rates and price points to understand what you can afford.
2. Save for a Down Payment
If you’re planning on buying your first house in 2024, you should be aware that home prices are higher than they were a few years ago. Because of this, you may have to save for a significant down payment. The traditional 20% is ideal as it avoids Private Mortgage Insurance (PMI), but there are programs available that allow for lower down payments if this isn’t feasible.
3. Improve Your Credit Score
A higher credit score can help you secure a better mortgage rate. Pay down your debts, especially high-interest credit cards, and ensure you’re making all payments on time.
4. Get Prequalified for a Mortgage
Before house hunting, get prequalified by a lender. This way, you understand how much you can borrow and can show sellers you’re a serious buyer.
5. Be Flexible and Patient
Keep in mind that your first home doesn’t have to be your forever home. Because of high prices, your ideal home may be out of reach. Be open to adjusting your expectations regarding location, size, and condition. Additionally, if mortgage rates are expected to decrease, it might be worth waiting later into the year to lock in a lower rate, but you should keep in mind that this comes with some risk. Home prices could rise further.
6. Consider Different Loan Options
Research various mortgage options, including fixed-rate, adjustable-rate, and government-backed loans like FHA, VA, or USDA loans, to find the best fit for your situation.
7. Hire a Professional
Consider hiring a real estate agent experienced in working with first-time buyers. They can provide valuable advice, help you navigate the buying process, and negotiate with sellers on your behalf.
Get More Tips & Advice
Buying your first house is one of life’s greatest adventures and at Mortgage Solutions Financial, we’re excited for you! Check back soon for more first-time buyer tips and advice or call to get more information on our services!
