5 Things First Time Home Buyers Should Know Before Entering The Current Market

April 8, 2022 • Insights

In 2022, the real estate market is unpredictable and intimidating to navigate as a first-time home buyer. Rising interest rates, multiple bids and rising median home prices have home buyers considering many things while contemplating a home purchase. One thing to keep in mind, however, is that you are not alone in this process.

1. Your Real Estate Agent is Here to Help

Not only are Rich Realty Group brokers knowledgeable about the Raleigh-Triangle housing market, but they also understand what home buyers are going through in this current real estate climate. Don’t be afraid to voice your concerns to your real estate agent. Although we wish we could, the brokers on our team still cannot control the market, sellers’ decisions, or financing options. However, clients can trust that we will do everything in our power to use our experience to ensure success even when faced with added challenges. We are in this together!

2. Mortgage Rates Can Change Quickly

When it comes to the status of the housing market in Raleigh, there is good news and less good news. The good news is that mortgage rates are at an all-time low. The less good news is that rates are fluid and are subject to change at any time. At this current moment, mortgage rates have nowhere to go but up. If you are planning on buying a home or making a move to the Raleigh area in the near future, we suggest reaching out to our team as soon as possible to get a better understanding of what’s involved with making offers on your first home!

3. You Will Want to have a Strong Credit Score

Your credit score will be a deciding factor in what you pay for a house as well as the interest rates you will incur. That’s why it’s important to monitor your credit score and strengthen it whenever you have the chance. Paying your bills on time, keeping credit card balances low, and disputing any possible errors on your credit report will allow you to maximize your credit score while minimizing what you will pay as a first-time home buyer.

4. Stick to Your Budget

Buying a home is the biggest purchase of someone’s life! If you are currently on a budget as a first-time home buyer, you should never feel pressured to abandon that budget because of the housing market. It’s important to make sure you consider options that won’t cause excess financial strain in case the market turns. When it comes to insurance rates, competitive offers and mortgage interest rates, do your own research to find out what is best for you, and stick to it. Working with a qualified lender will make this process so much easier!

5. Make a Ready-to-Buy Checklist

Before you purchase a home, there are a few questions you should ask yourself:

Have I been pre-approved for a loan with a reputable lender?
Am I working with an experienced real estate agent? (from Rich Realty Group)
Do I have some cash to make competitive offers and cover closing costs?
What are my top needs and top geographic areas I want to look at?
Am I ready to commit to my home and my city for at least a few years?

Being able to say yes to these questions means that you are ready to start house shopping! Otherwise, our recommendation is that it may be time to reevaluate your plans to be a first-time home buyer for the time being. At the end of the day, buying a home is an incredible opportunity to invest in your future, and in our very humble opinion, investing in your first home in Raleigh, North Carolina is sure to set you up for success.

It’s a great day to buy real estate! We invite you to connect with one of our brokers as soon as you’re ready to begin your home buying journey!

Call: 919-710-0256 or email us directly at info@richrealtygroup.com