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First-Time Homebuyer’s Playbook: How to Navigate the US Housing Market and Achieve the American Dream

Buying a home is a major milestone in life, but the path to homeownership is filled with challenges—rising prices, stubborn mortgage rates, and fierce competition. According to the National Association of Realtors (NAR), first-time buyers are now older and wealthier than ever, with the median age rising to 38 in 2024 and household income reaching $97,000. But don’t let these stats discourage you! With the right strategy, you can cross the finish line and claim your place in the housing market.


At ReadySetLoan, we believe in empowering first-time buyers with the knowledge and tools they need to succeed. Let's dive into the key steps to securing your first home.


Step 1: Ready Your Finances

Do the Cash Math

One of the biggest hurdles is saving for a down payment and closing costs. While a 20% down payment avoids mortgage insurance, most first-time buyers put down around 9%, according to NAR. Additional costs, like closing fees and home maintenance, can add 2% to 6% of the purchase price. Be sure to budget for unexpected expenses—because even the best-planned purchases can come with surprises!


Gather Funds for Upfront Costs

If saving feels overwhelming, explore these options:

  • A pledged asset line, allowing you to borrow against your investments.

  • 401(k) withdrawals (though penalties may apply).

  • Gifted down payments from family or friends (with proper documentation).

Budget Smartly

Consider all costs: mortgage, taxes, insurance, and any HOA or maintenance fees. While banks may approve loans based on a 45% debt-to-income ratio, it’s crucial to choose a mortgage that fits your budget. Use ReadySetLoan’s mortgage calculator to estimate your monthly payments.


Step 2: Research Your Mortgage Options

Get Preapproved Early

A mortgage preapproval shows sellers you’re a serious buyer. Start gathering essential documents like:

  • Recent pay stubs

  • Tax returns

  • W-2s or self-employment tax forms

  • Bank and brokerage account statements


Talk to Lenders

Some buyers hesitate to approach lenders early, fearing a credit score hit. But don’t worry—a “soft pull” for preapproval won’t affect your credit, and it helps you understand your borrowing power. ReadySetLoan can connect you with trusted lenders to get started.

Step 3: Take Advantage of Government Programs

You might qualify for special programs, such as:

  • VA Loans (for military members and veterans) with zero down payment.

  • USDA Loans (for rural areas) with no money down.

  • FHA Loans requiring only 3.5% down, with limits up to $1.8M in high-cost areas.

  • State and local grants—check ReadySetLoan for options in your area!


Step 4: Choose the Right Home

Understand Real Estate Agent Changes

Due to a 2024 industry shake-up, buyers may now need to pay their agent’s commission (typically 2-3%). Compare agents before committing and ensure you fully understand the contract.


Think Like an Investor

Rather than falling in love with a home, consider its long-term value. Will it appreciate? What maintenance will it require? Smart buyers think ahead to resale potential.


Strengthen Your Offer

  • Include a preapproval letter to show financial readiness.

  • Offer a good faith deposit for added credibility.

  • Consider waiving contingencies in competitive markets—but only if you’re comfortable with the risks.


Step 5: Close the Deal

Compare Lenders

Get quotes from multiple lenders and see if your preferred one will match a competitor’s offer. Mortgage points can lower your rate, typically by 0.25% per point.


Consider the Economic Climate

If interest rates are high, an adjustable-rate mortgage (ARM) might be a good short-term solution. Just ensure you understand how payments could change when the initial period ends.


Appraisal & Final Steps

A lender will require an appraisal. If the value comes in low, be prepared to renegotiate. Finally, brace for closing costs—attorney fees, property taxes, and more. Once everything is signed, you’ve officially crossed the finish line!


Your Homeownership Journey Starts Here

Buying your first home might feel like a marathon, but with the right guidance, you’ll break through the tape victorious. ReadySetLoan is here to support you every step of the way. Visit our site today to explore mortgage options, get preapproved, and start your journey toward homeownership!


For expert tips, tools, and personalized advice, make sure to check out ReadySetLoan—your trusted partner in the race to homeownership!




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