First-time homebuyers: consider the long game

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Tracey Craft, Realtor, The Craft Dolan Team at Ansley Real Estate | Christie’s International

All of my buyers right now are under 30. Every single one of them. And I love it!

First-time homebuyers are taking advantage of interest rates in the 6%’s, a healthier housing inventory than we’ve seen in years, and low downpayment options offered by lenders.

February kicked off with interest rates in the mid 5%’s, spurring buyer activity. At the end of last week, lenders were reporting 6.2% - 6.8% and talking about the upcoming swing back up to the 7%’s, indicating now is the time to lock in.

Lenders are offering a variety of programs to keep the home-buying ball rolling. Especially attractive are 3% downpayment options on conventional loans for first-time buyers, and discounts that can lower interest rates by as much as 0.5% when a buyer’s annual income is under the median Atlanta income of $95,000.

And if that 3% downpayment is still a challenge, consider sources such as a family gift. There are guidelines, but simply put those that share a familial relationship can gift funds to a buyer towards a downpayment.

“The downpayment often feels like a barrier to first-time buyers, but there are programs to help promote ownership,” observes Isaac Berry, Southeast Mortgage. “I encourage first-time buyers to play a long game and not be overly concerned with near-term market gyrations, given that over time renting is essentially a contract to make a house payment forever, whereas buying secures the price of your home forever and allows you to lock in guaranteed payments that create an equity position and ultimately grow personal wealth.”

I could not have said it better. And there is likely not a lender or a Realtor that would disagree.

“For most, a home is your largest nest-egg,” says Geoff Smith, Assurance Mortgage. “Making a mortgage payment each month is like putting money into a savings account. You’re building equity in an asset that will be realized when you sell it later in life, or which you can borrow against in an emergency.”

Steve Beecham, HomeTown Mortgage uses one of my favorite sayings: ‘date the rate, marry the house.’

“Rates may be climbing now, but we expect them to lower next year, so marry the house when you find one you like. We can refinance later,” he says.

Ty Keller at Cross Country Mortgage puts it this way: “Although we’ve seen an interest rate increase, we’re still at historical lows, while rent increases have been rampant. Talk to a lender about first-time buyer programs and crunch the numbers. You will likely pay less per month to own then to rent.”

Another one of my favorite sayings: ‘if you’re paying rent, you’re paying someone else’s mortgage.’ It’s true! Call me to discuss how you can stop paying someone else’s mortgage and start paying yourself by acquiring an equity position in a home of your dreams. Play the long game.

The Craft Dolan Team is hosting a panel for First Time Home Buyers on May 4th, 5:30 - 7 pm, at their Ansley office, 31 Church St, Alpharetta. Email your RSVP to tracey@ansleyre.com. The event is free, but please register for a food and beverage headcount. Learn more at: https://www. ansleyre.com/site/the-craft-dolan-team/ pages/6283/tastings-teachings