Key Steps for Making Your First Home Purchase During a Recession

Guest Blog By: Alice Robertson

It’s official: The US is in a recession. While the exact impacts of this recession have yet to be seen, knowing we are in a recession is enough to strike fear into the hearts of first-time home buyers. If you were planning to make your first real estate purchase this year, you don’t have to let recession worries interfere with your goal. You just need to take the right steps to get started on the right path towards buying a home during a recession. 

Buying or selling a home in the Las Vegas area? Partner with the Batchelor Hanna Group for superior real estate service! Call 702-595-8036 or complete this form. 

Start By Reading Through Tips for First-Time Buyers 

Figuring out real estate for the first time can be stressful, but home buyer guides make it pretty simple to find all of the helpful tips and information you need to ensure a smooth search and transaction, even if you are a home buyer looking into your first mortgage. You may discover that the first tips and steps center around your finances. That’s because whether you plan on living in your home, renting it out, or flipping it, real estate purchases should never be taken lightly. This is a major commitment of your time and resources, so make sure that your finances are stable enough to handle any and all upfront and recurring costs. For instance, most people have no problem budgeting for a down payment and other initial expenses but they often forget to factor in repair and maintenance costs. Allocating for these expenses is vital for home buyers and investors. 

Then, Begin Researching Your Financing Options  

For first-time home buyers, taking advantage of special mortgage options like FHA loans, VA home loans, and Fannie Mae programs can make purchasing a home much more affordable. This is because most of these programs do not require you to make a down payment, so you can put any cash you have saved towards covering your monthly housing payment. 

Unfortunately, if you plan on investing in property for your first home purchase, you will not be able to use these programs. Getting a loan for an investment property will typically require you to make a down payment of at least 20 percent of the total home price. Not to mention that you may also need to cover closing costs for your investment purchase. Whether you buy or invest, you can also save yourself some cash by researching mortgage rates before you apply.

Finally, Find and Close on Your Perfect Property 

After you work through your financial options, you are finally ready to start searching for your dream property. To begin, do a little internet detective work by checking out the local housing market online; for example, in Las Vegas, you can expect to pay around $315K for a home on average. This price will vary depending on the neighborhood. Of course, it’s better to get in touch with a skilled and dedicated realtor from the Batchelor Hanna Group who can help you explore the Las Vegas market.

If you plan on living in your new home, you should begin your search by making a list of all of the home features you need to accommodate your lifestyle. For example, if you are planning on starting a family, you may want to make sure your home will be safe for your children. Also, try to focus on the different elements that cannot easily be changed first, such as the layout of the home and location of the lot.

If you plan on renting your property out, you will want to focus more on features that will attract potential renters. Actually, renters tend to pay more attention to neighborhood features than they do those inside the home. For example, in most areas renters are looking for single-family homes that are in neighborhoods with good schools and low crime rates. During a recession, you may be able to snag a home in a desirable location for a much lower price than you would usually pay, and that means making more profits off of your rental. 

Just because the US is in a recession doesn’t mean you have to put off your dreams of homeownership. What it does mean is that you will need to be especially careful when making such a major financial move, but with this guide, you can save yourself some time and stress.