This August 2016, the share of first-time buyers jumped to 51%.
Last August, 35% of buyers identified themselves as first-time buyers.
If there’s one thing that characterizes the residential real estate market in recent years,
it’s that the supply of homes for sale has been low, low, low.
Inventory might be low, but demand is still high.
The supply-demand imbalance is driving up home prices.
As a result, new challenges, mainly financial, are emerging as a concern for buyers.
Buyer Financial Concerns
This August, 9.4% of buyers reported having difficulty qualifying for a mortgage.
That was up from 5.6% last year.
The need to improve credit scores doubled as a problem from last year,
increasing from 9.7% of all buyers in 2015 to 19.5% this August.
And not having enough funds for a down payment?
That rose from 16% last year to 25% this year.
If you are among those first-time buyers who are just starting to look,
there are a few things that you can do to improve your chances of success:
- Get underwriter approved
- A strong Approval communicates to the agent & seller that you can close escrow.
- Know your FICO score
- Work to get it above 700 to improve your ability to qualify and to get a better rate.
- Understand what you can afford as a down payment.
- Get all of your financial records organized including recent bank and financial statements and the past two years of income tax filings, and pay stubs.
- Record the details of any debts you may have: Credit card, Car payments Student loans.