Six tips for first-time homebuyers
Over the last two years, Nevada’s real estate market has been buzzing, especially during the COVID-19 pandemic where we saw a national rise in homebuying. According to realtor.com, in Las Vegas, specifically, home values have increased more than 13 percent this past year with the average cost of a home at $340,000.
Many factors contribute to individuals and families purchasing a new home, including relocating for work, wanting a larger space for family as well as fluctuating interest rates.
To get a better idea of the current landscape, Taylor Morrison gathered data surrounding the effects of COVID-19 on the housing market. We found that over the last year, first-time homebuyers have increased from under 27 percent to over 33 percent of total buyers, a relative increase of over 20 percent, with desire for their own place and no rent being main contributors to their purchase decision.
As America’s Most Trusted Home Builder, we understand how daunting buying a new home for the first time can be, especially in today’s competitive real estate market.
To help ease the stress and anxiety of first-time homebuying, our branch managers have created a list of tips for first-time homebuyers to consider before signing on the dotted line.
1. Create a wish list
What do you want? Is it new appliances, a big backyard or maybe a three-car garage? Before house shopping, it’s a good idea to decide what features and functionalities are desired in a new home.
For example, at Taylor Morrison, we offer a variety of different floor plans and communities throughout the valley to satisfy every type of homebuyer (modern architecture, energy-efficient features, close-knit communities, etc.).
2. Find an expert
Buying a home can be a challenging process and buying a home for the first time can be even more overwhelming.
That’s why we recommend researching and finding a real estate agent that is aligned with your expectations. For example, Taylor Morrison offers sales representatives to assist throughout the homebuying process to ensure the home meets buyers’ needs and they are able to transition smoothly.
3. Explore your options
Covering expenses for a home looks different for each person. When it comes to loans, there are many different options available. Be sure to explore your options and find the program that fits your lifestyle and future goals best.
4. Build your credit
When purchasing a home, it is important to have built a strong credit history through on-time payments, reasonable debt load and various types of credit (student loans, auto mortgage, credit cards). These factors all contribute to what you will be able to afford overall and have a direct impact on your interest rate.
At Taylor Morrison Home Funding, we offer ARO (Able Ready Own), a complimentary service to help potential homebuyers improve their financial health. The program provides personalized strategies to enhance credit and educate customers in their financial decisions.
5. Pay down debt and build a reserve
Debt directly affects your credit score, which in turn determines mortgage qualifications and interest rates. Take appropriate steps to help pay down debt and then begin saving to build a reserve for a down payment and closings costs.
6. Research the area
Location is critical when purchasing a home since it’s the one thing you can’t change about a house after purchase. Take the time to visit the neighborhoods in person that you’re considering and conduct thorough online research.
We understand buying a home can be overwhelming at first. However, pat yourself on the back because this is a momentous milestone for every homebuyer and there are several programs and organizations that are available to help make this process as seamless as possible. Good luck on your homebuying journey.
Deanna Ball is the production manager of Taylor Morrison Home Funding’s Las Vegas division. Ball is an award-winning and seasoned mortgage industry professional with more than 17 years of experience in loan originations and mortgage operations and extensive knowledge in purchase originations, specifically for new-home construction and veteran administration loans. She joined the Taylor Morrison Home Funding team in February 2020 as a branch manager overseeing business in Nevada. Ball has called Las Vegas home for 40 years, alongside her husband and three children.