Top Tips for First-Time Homebuyers
Buying your first home in Wilmington NC may seem like an impossible dream yet millions of first time buyers buy their first home every year. Have you started to look around then got discouraged and decided to continue renting instead? Here's a great list of tips to help you buy your 1st home.
Pros and Cons of Rent vs Own
First before we go over the tips lets talk about the most common decision you'll need to make first, which is should you continue Renting or Buy now?
Renting has it's advantages like you can move whenever you want, you don't have to have good credit, the landlord makes the repairs, and you don't have to make any commitments. Renting disadvantages are of course you never will have it paid off and rents keep increasing.
Buying a house has it's advantages like picking a place that is all yours, painting it any color you want and adding your personal touches, building equity, and working towards having the house paid off. Another big advantage is that your mortgage will probably be less than what the rent would have been for that house. Of course the disadvantage of owning a house is if something breaks you'll have to fix it.
The American Dream
We've grown up hearing that owning a home is the American Dream. Travel to other countries and you'll hear stories of homeownership being impossible in many other continents around the world and an average household has an extended families (children, parents, grandparents, great grandparents) living in very tiny apartments.
Yes, prices are high for Real Estate in Wilmington NC yet let's agree that it's not impossible to own a home here.
People buy houses in the Wilmington area every day with very little money as the down payment. Saving for years to buy your first home really isn't necessary when there are great 100% loan options in the Wilmington area.
How Much Do I Need to Buy an Affordable Home
Typically in Wilmington you'll need about $1,000 as the down payment when you write an offer. Many first time buyers have had as little as $500 as a down payment, especially when getting a 100% loan.
100% Financing
So we've all heard money doesn't grow on trees so someone must be helping out first time homebuyers. YES, we have 100% financing in Wilmington NC area. One of the most popular is the USDA loan which is a government loan program for houses in rural areas. Although USDA is for rural areas, we are fortunate they have not redone the USDA maps yet. For now Wilmington is still an available area. Here's a link to the USDA loan program which will tell you more about how to qualify and also has links to areas that houses are for sale that may qualify for USDA.
Another great 100% loan in The City of Wilmington is the HOP loan. This is for lower income families (starts at $38,000 and goes up based on dependents) and credit score minimum 620. This program is for 1st time home buyers. 60% of the loan is a low interest rate and 40% of the loan is 0% interest! Minimum down payment is $500 and there is no PMI payments. You must with your current employer for at least 6 months and 1 year in your current profession.
Tips for First Time Homebuyer
1) Good Credit is Important
If your score is close but needs a little help, there are helpful lenders in Wilmington that will give you free advise on how to improve your credit. Don't assume you know what needs to be done. Get advice from the experts. It could save you time and money.
2) Skip the Expensive Cars and Car Payments
One of the biggest mistakes I see is people pay hundreds of dollars a month for their cars. Next time you are at a car dealership and thinking about buying a house, ask yourself "Can I Live in that Car". The moment you drive that car off the dealership lot the value has significantly dropped. Yes it's easy to get a car loan but that monthly payment will count against you for the next 4-6 years! Buy your house first before signing the contract for a car payment.
3) Keep your Expectations Low for the 1st Home
LOL, ok this Cuba house is an extreme example of low expectations. I promise you that we'll find a house for sale nicer than this for you.
We all want the big oceanfront house at Wrightsville Beach with 2 car garage and access to the beach from our backyard but this is your 1st home so let's refocus. You might have pets and require a fenced yard. By the way, I recently did a great blog post about Dog Parks in the Wilmington area and Dog Friendly Real Estate.
When looking for your first home write down your must have list but keep an open mind. This first home won't be your forever home. It's a place to start building equity so you can move to your next bigger and better house. Make smart decisions and keep trading up and eventually you might find yourself in that Wrightsville Beach Oceanfront House you've always dreamed of.
4) Timing is Everything
Spring is not the best time to look for a house! In the Spring there are more houses for sale in Wilmington but there are also a whole lot more buyers searching for a house at that time too. More buyers mean more competition for you for that great affordable house. With more competitors that means you'll risk being in multiple offers on a house and will find it very difficult to get all your closing costs paid by the seller.
5) Get Pre Approved First
When you find that great affordable house you'll need to submit a pre-approval letter with your offer. There are a lot of buyers looking for the same thing as you so don't wait to get the approval letter. Waiting until after you find a house can be a big mistake because while you're working on getting it, someone else can put in an offer for your house.
6) Don't Wait
I've seen a lot of buyers in Wilmington wait the last few years for prices to get better. Instead prices have gone up and up. Find a house that you can call home for a few years and start there. Again, it's not your forever home. You can continue to pay your landlords mortgage or you can start building equity for yourself.
7) Consider Real Estate in Other Areas Around Wilmington
Foregoing your dream of owning a home just because you can't afford to buy what's For Sale in Wilmington doesn't make sense.
Brunswick County Homes for Sale in Leland is still more affordable but maybe not for much longer. As prices continue to go up in Wilmington many people are buying in Leland when they never thought they would. The lower prices, lower taxes, and abundance of new home options make affordable home plan a lot easier. The #1 reason I hear people don't want to live in Leland is because of the bridge traffic or because they think it's too far from Wilmington. Since the highway was widened traffic is not as much of an issue. You'll get to Monkey Junction and Carolina Beach just as fast from Leland as you would from the North Wilmington or the Ogden area. In fact, I think you'll get there faster! For more Brunswick County Homes For Sale here's a link to some of Homes For Sale by City in Brunswick County.
Another great option is Homes for Sale in Pender County like Hampstead. In Hampstead you might be surprised to find you can get a larger home with a lot more square feet for a lot less than Wilmington. So why buy the tiny home in Wilmington if architectural styles and larger homes are better in other close towns. How about checking out Homes For Sale in Burgaw. This quaint little town is an easy 30 minute commute to Wilmington and will typically give you more elbow room between you and your neighbor's house. For more Pender County Homes For Sale here's a link to some of Homes For Sale by City in Pender County.
Homes for Sale in Castle Hayne is also a great option and still very close to Wilmington without needing to cross a bridge or get on a highway. Castle Hayne is often overlooked and yet it has some great Real Estate options plus it's in the USDA 100% loan area.
8) Hire a Professional Buyer's Agent
This step is equally as important as getting pre-approved before you start looking. Affordable homes for sale are getting hard to find and when one comes on the market there's usually several buyers looking at it at the same time. A full time Buyer's Agent will be looking for you and will be able to get you in as soon as it comes on the market.
In the Wilmington market there's over 3,000 Real Estate agents and most of them are part time. Your house will be the biggest purchase you'll make in your lifetime. It's not the time to hire a friend who "does it part time" just to help them out. You might get lucky or you might be like might get discouraged when they aren't very helpful. You need a professional working for you.
The Regina Drury Real Estate Group is full time and actively prospects to find a home for our buyers. When our buyers prefer a neighborhood or an area that there are no houses for sale, we call the neighborhood, door knock the neighborhood when allowed, and we mail them letters requesting help to find you a house. We go the extra mile.
When choosing the Real Estate Agent you'll work with it's a smart step to check out their reviews. There's an abundance of 5 star reviews for Regina Drury and Regina Drury Real Estate Group on Facebook, Google, and Realtor.com.
Homes for Sale Wilmington NC
Finding Affordable Homes for sale in Wilmington NC can feel like a challenge but with the right preparation steps you'll be in your new home sooner than you think.
Taking the first step and getting pre-qualified is an important step and I always recommend that you do it right away when you start thinking you might want to buy a house. One of the reasons to get this done right away is so that if something shows up on your credit that you didn't expect, you have time to fix it. Also getting pre-approved early is a good idea because you never know when that perfect cute affordable home will come on the market.
Owning your first home is an exciting feeling. Soon you'll be picking out paint colors and hanging pictures in your 1st place. Your first barbecue at your home you'll delight at showing your friends and family your new home. Pride of Home Ownership is all possible and we're excited to help you!