A report by Investors.com reveals that while this year might be a great time to buy a house, certain market conditions, particularly rising home prices and tight competition with cash investors, are making things more difficult for new home buyers to get into the game. Moreover, other groups with money to spare and better credits to show, including real estate investors, move-up buyers, and retirees, are as eager to get their hands on a good home purchase.
Nevertheless, with interest rates dipping this week, a first time home buyer in Utah can still find start up homes that might suit them, particularly brand-new homes. Recent market research shows that home building is up as builders get back to work and prices for housing materials and component parts have somewhat stabilized. For as long as the supply for homes in the market is on the upswing, new buyers will have a place at the buying table.
Certain factors, however, contribute to keeping real estate rookies on the sideline, among them, tight credit offered usually to new buyers, as well as high downpayments required of them. Competition from more savvy investors with ready cash to flip low-end properties and fixer-uppers are also edging out newbie buyers looking for more affordable homes to start out.
The rise in demand and decreasing supply will also present a challenge to new home buyers. Sellers are sitting it out, waiting until the market turns again to favor them. But with current conditions seeming to accommodate sellers’ concerns, home prices are rising while supply of homes are at a standstill, if not diminishing. While prices are getting better for sellers, many of these home buyers are finding homes that cost more than they are worth in the current market.
If you have decided to invest in a home now, you need to get familiar with the process of applying for a mortgage. Before you even begin the process of borrowing from a lender (to fund your home purchase), you have to make sure your credit history is good. Mortgage lenders will judge your capability to pay by looking at your credit score, income, and other financial statements, among other procedures.
You can hire a mortgage broker to prep you up for the process. Dependable mortgage companies in Utah, like Altius Mortgage Group, can help get eager Utah first time home buyers started by providing them with a good loan package suited to their financial profile.
First-time home buyers can still hang on to the assurance that their government has room enough to keep them with the resources to play the game. It continues to offer programs that were effective then and continue to be effective now. Many tax credits are available for those who choose to purchase this year, such as the First-Time Homebuyer Credit by the IRS, although these buyers must meet some requirements and qualifications to avail of these federal tax credits.