5 helpful tips for first time home buyers

We hear you’re ready to buy a home for the first time. Congrats! This is a really exciting moment. Owning a home offers great financial equity and stability for you and your family. There are some important things to know as a first time home buyer, especially in a seller’s market like the one we’re seeing in 2022. The industry has a lot of jargon and it can be pretty overwhelming when you first start looking into it. But it’s not so hard and we’re here to help! Remember, every home buyer was once a first time home buyer. You can do this! Here are five tips to get started:

1. Find the right real estate agent

Finding the right real estate agent for buying your first home is crucial. Real estate agents do more than just showing you homes. Agents are in charge of negotiating your offer, and handling all the paperwork. So you want to find an agent whose personality is a good match, who is responsive and organized, and who understands the housing market you’re most interested in. It’s important to interview them, as they’re working for you and the more comfortable and confident you are in them as a person, the more confident you’ll be in their professional recommendations.

2. Understand your financing and mortgage options

Depending on how much you’d like to put down on a house as a down payment, there are multiple types of mortgages that are options for first time buyers. Some banks and states even offer specific rates, grants, and loans for first time buyers. This is another way that an agent can be helpful. All residential real estate agents work with first time homebuyers but some agents are certified in it. Look for an agent who understands the unique options for first time home buyers and has connections with residential lenders. Read up on mortgage options and vocabulary (15 year fixed loan, 30 year fixed loan, loan interest rates, etc.) before speaking with the lender and come with questions. That way you can ensure you’re able to take advantage of the first time buyer options available to you.

3. Plan for the housing market

First time buyers have unique challenges—especially in today’s market. Lack of housing inventory has made home prices rise. In hot real estate markets like Charlotte, Durham, Nashville, Atlanta, and Dallas, there are so many buyers that often homes are going to multiple offer situations. These can be stressful moments, especially for new buyers but it is absolutely not impossible to win your home. Your job is to work with your agent to make your strongest offer, in a timely manner.

4. Make your first bid your best bid

Once you find a home that you love, make your first bid your best bid. You may go up against iBuyers or other local buyers. Ribbon is here to help no matter the home buying situation.

5. Buy a home with RibbonCash

With Ribbon, first time buyers can turn their offer into all cash—which is often preferred by sellers. This will eliminate contingencies and offer a faster closing. Plus, paying in all cash makes your offer 3x more likely to win. Ribbon purchases the home on your behalf with RibbonCash. You’ll be able to move in right away. You’ll then have extra time to work on your financing. Once your financing is ready, Ribbon will sell the home back to you for the exact same price. A win for worthy buyers everywhere!

You can do this!

A study from Realtor.com shows a generational shift with more than 45 million millennials reaching “the prime first-time home buying ages of 26 to 35 in 2022.” This means there will be lots of first time home buyers heading into the market this year. Ensure you’re a step ahead by following these tips and you’ll be well on your way to your dream home.

Interested in learning more about how Ribbon can help? Our Ribbon experts are happy to chat at no cost.