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<\/a>You may be one of the many would-be first time home buyers who opted to continue to rent or live with their parents until the timing was right.\u00a0 Many would-be home buyers did the same, as a 2106 Pew Research Center report pointed out the millennial housing trend that may be associated with the decline in the homeownership rate since the Great Recession (For First Time in Modern Era, Living With Parents Edges Out Other Living Arrangements for 18- to 34-Year-Olds<\/em><\/a>; pewsocialtrends.org; May 24, 2016).\u00a0 However, economic factors have significantly improved, and the housing market has stabilized.\u00a0 So what\u2019s holding you back?<\/strong><\/p>\n Buying a home can seem intimidating, and overwhelming.\u00a0 But it doesn\u2019t have to be. On the Holmes and Rahe Stress Scale (Holmes & Rahe 1967), having a mortgage over $10,000 rates 31 (just above being foreclosed upon) and moving is rated as 20. This commonly used stress scale is cumulative, so the rating for buying a home is at least 51. However, being prepared can help you anticipate and deal with most circumstances that may arise.<\/p>\n Finding a professional and competent Realtor who will \u201cbe\u201d with you throughout the process is highly important.\u00a0 Of course, finding an agent whom you trust can be a process too.\u00a0 It\u2019s important to know your agent will be there for you, not only to answer questions and resolve your concerns, but to also represent your best interests.<\/p>\n What are your expectations?\u00a0 Your home buying expectations are influenced by your experiences.\u00a0 However you are also influenced by a combination of the media, relatives, friends, and co-workers.\u00a0 Having very high and unrealistic expectations can not only increase your stress, but can but a wrench in the transaction before it starts. Discussing your expectations with your Realtor will determine if they are realistic or not.<\/p>\n Before deciding on the realtor you want to work with, informally talk to several about how they help first time home buyers.\u00a0 Unfortunately, home buyer surveys (such as the annual National Association of Realtors Profile of Home Buyers and Sellers (nar.realtor)) suggest that the majority of home buyers and sellers typically hire the agent they first encountered.<\/p>\n Besides assisting in home searching and negotiating sales contracts, your agent should be by your side throughout the transaction.\u00a0 Your agent should be available to you to help you maneuver the bumps and surprises that can derail your home purchase.<\/p>\n Even though you may not place an agent’s experience high in your list of agent characteristics,\u00a0 a research study by Bennie Waller and Ali Jubran (\u201cThe Impact of Agent Experience on the Real Estate Transaction.\u201d Journal of Housing Research<\/i> 21, no. 1 (2012): 67-82) suggests otherwise.\u00a0 They concluded that an experienced real estate agent can yield a better result than an agent with little or no experience.<\/p>\n Check your agent’s license.\u00a0 Make sure your agent is a full time agent (meaning that the only job they have is selling real estate).\u00a0 Don’t be shy about asking and calling your agent’s references.<\/p>\n If affordability, down payment and closing costs are a concern, apply for a first time home buyer assistance and\/or grant program.\u00a0 There are many programs available offered through local and state organizations. Your lender can help you find and apply to the programs for which you qualify.\u00a0 Regular communication with your loan officer is important because the funding is limited annually and can quickly run out.<\/p>\n Locally, one of the mainstays for first time home buyer assistance is the Maryland Mortgage Program<\/a> (mmp.maryland.gov).\u00a0 The MMP is provided through the Maryland Department of Housing and Community Development, and funded by the Community Development Administration.\u00a0 It is described as \u201c\u2026providing home loans and down payment assistance to Maryland\u2019s working families to encourage responsible homeownership and build strong communities, working through a network of Maryland Mortgage Program lender organizations<\/em>.\u201d<\/p>\n MMP loans are just like other mortgages, except that they offer competitive rates and offer additional assistance in the form of Down Payment Assistance and Partner Match Programs (up to $8,500 from the Department\u00a0and possibly more from partner organizations).\u00a0 Some Partner Match programs offer homebuyer grants.\u00a0 However, other Assistance programs are generally in the form of deferred, no-interest loans.<\/p>\n Combining Down Payment Assistance with a Partner Match program can significantly reduce the amount you need to buy your first home!\u00a0 The Down Payment Assistance program is a loan of up to $5,000.\u00a0 The loan is a zero-percent deferred loan, which is repaid when you pay off the main Maryland Mortgage Program\u00a0mortgage when you refinance, or sell the home.<\/p>\n Department of Housing and Community Development has partnered with many organizations and employers that can provide you with additional assistance.\u00a0 Your current employer may be a participant with the Partner Match program (check the Partner list at mmp.maryland.gov).\u00a0 Local organizations also offer home buyer assistance (including the Moderately Priced Dwelling Unit Program) as well, such as the Housing Opportunities Commission<\/a> (hocmc.org) and The City of Gaithersburg <\/a>(gaithersburgmd.gov).<\/p>\n Original published at https:\/\/dankrell.com\/blog\/2017\/07\/09\/first-time-home-buyer-assistance\/<\/p>\n Copyright\u00a9 Dan Krell If you like this post, do not copy; instead please: Are you a first time home buyer worried, overwhelmed, or intimidated by the process? You\u2019re not alone.\u00a0 First time home buyers have had the most difficulty getting back into the real estate market after the Great Recession.\u00a0 Many would-be first time home buyers lack the financial resources, while others worry about the long term value.\u00a0 … <\/p>\nAre you overwhelmed or intimidated by the home buying process?<\/h3>\n
<\/a>Choosing your Realtor<\/h3>\n
First time home buyer down payment and closing cost assistance<\/h3>\n
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\nDisclaimer<\/a>. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.<\/p>\n","protected":false},"excerpt":{"rendered":"