Posted: 10/25/2016

The housing market is hot for first-time home buyers. In fact, first-time home buyers helped turn existing-home sale numbers around in September, according to a report from the National Association of Realtors (NAR).

Specifically, sales from first-time home buyers hit a 34 percent share. This is the highest that share has been in four years, according to the report. What’s more, larger regions had an increase in closings in September and the percentage of distressed sales dropped to 4 percent.

Lawrence Yun is the NAR chief economist.

“The home search over the past several months for a lot of prospective buyers, and especially for first-time buyers, took longer than usual because of the competition for the minimal amount of homes for sale,” Yun said. “Most families and move-up buyers look to close before the new school year starts. Their diminishing presence from the market towards the end of summer created more opportunities for aspiring first-time homeowners to buy last month.”

Home inventory continues to remain low, though there was a slight uptick. The NAR reports that by the end of September, inventory jumped 1.5 percent to 2.04 million existing homes on the market, but that number is still 6.8 percent lower than it was 12 months ago.

If you are a first-time buyer looking to jump into this market, you will want to get information on the pre-approval process and if you qualify for a loan. Throughout this process, you should understand that purchasing a home includes many moving parts. The best strategy is to be prepared and plan ahead of the time.

Although the process of getting a mortgage may seem complex, you’ll find that it is much easier to grasp when you break it down into a series of steps, all of which lead to your first home. Those steps, from the application all the way to funding, can be viewed here. You also will want to consider what your credit score is, how much of a down payment you have and how that will impact the type of loan you get, and if you would want to use discount points to lower your interest rate, among other things.

There is a lot to consider, and we at Guarantee Mortgage can help guide you through the process. You should connect with a loan advisor. The consultation usually takes between 15 and 30 minutes. An advisor will answer your questions, talk to you about the mortgage options that make sense given your finances and find out if you qualify.

Contact us today!

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