Michael Bates Shares First-Time Home Buying Tips in DC

Buying a home can be a daunting and stressful process, especially if you are going through the process for the first time. One report found that Americans are renting for six years before they buy a home, which is higher than the 2.6 years in the 1970s. People looking to buy their first home tend to wait because they need to save more money for the markets where they want to live. Living in a coastal city can become expensive and tricky when looking for a great place to buy. Washington, DC is no different, with its competitive market and housing costs rise.

First, Figure Out Your Price Point

As the prices of properties increase, you need to determine the amount per month you can pay for your first home. In DC, from March 2018 to March 2019, the median price for detached single-family homes increased by 10.9 percent, and the median price for a townhouse grew 11.9 percent. Look at your current finances and ensure that monthly mortgage is no more than one-third of your gross income. Also, be sure to factor in all of your debt when finding your budget. Calculate all the monthly payments you would have to make towards these debts, including your mortgage, and ensure that you don’t come up short when creating this budget.

Find First-Time Buyer Programs

Many places around the country offer various programs to help people to purchase a home. When beginning the process, do some research for the different types of assistance that you can receive; various national and local programs can help. In Washington, DC, the DC Housing Finance Agency, or DCHFA, offers multiple plans. DC Open Doors is one program offered that helps with home purchase loans an offers down payment and closing cost assistance.

Start Saving Early

When buying a home, a lot of various costs will pop up and could impact your budget. Before you even officially begin the home search, start saving for an emergency fund and a down payment. It is pretty common to have to put 20 percent down when buying a home, but lower rates are typical as well. Regardless of the rate, you will have to put down a significant chunk of money. Don’t forget to factor in closing costs and a moving budget because these are significant expenses that you can expect after buying a home.