home buying tips for 2017
First Time Home Buyer's Guide

First Time Buyers: What You Need Know to Navigate the 2017 Market

Are you planning on being a first-time home buyer in 2017? Find out what you need to know to navigate the market so you can get the home you want.

Buying a Home in 2017? Here Are 6 Things You’ll Want to Know

Now that the panic, unrest, and general exhaustion caused by the presidential election is, for the most part, in our rear view mirror, people are starting to look ahead. For many, this means buying their first home in 2017. But, the first year after a presidential change is always tricky when it comes to buying a home, and this year is shaping up to be no different. Here are six important things first-time home buyers need to know if they want to make buying a home one of their New Year’s resolutions.

home buying tips for 2017

#1: Rates Are Already Rising

A change of presidents traditionally causes interest rates to rise slightly, but since Trump’s election win, the rates have already climbed by 0.5%, a rather quick hike. Because Trump’s election is having a negative effect on inflation, buyers should expect home prices to also start rising. If the recent upswing in loan applications tells us anything, it is that the threat of higher interest rates and home prices is creating a sense of urgency among buyers.

#2: City Properties Are Still Best for Investment Properties

If you want to buy a home that will provide you with the highest appreciation potential, then you’ll want to focus your search in metro areas. City properties have the best price appreciation rates and income potential from renters, especially when those properties are located in larger cities.

home buying tips for 2017

#3: You Need to be Able to Afford More Than Just the Down Payment

At one time, home buyers could get away with just the down payment coming out of pocket. All other associated fees and closing costs were able to be rolled into the mortgage. But these days, lenders want buyers to not only have the down payment amount, but also their closing costs available in cash. And with some closing costs as high as 2.5% of the loan amount, this can really have an impact on how much home you can actually afford.

#4: Get Pre-Qualified Before You Start Looking for Homes

Getting pre-qualified for a home loan doesn’t guarantee you will be approved, but it is a good place to start. This is because getting pre-qualified will give you an idea of how much home you can afford. Plus, because your credit score, debt-to-income ratio, and down payment amount can have an impact on your interest rate, getting pre-qualified will give you the information you need early on in the process so you can improve your chances of getting your loan approved at the best rate possible.

#5: Do Your Due Diligence When Choosing an Agent and/or Lender

Buying a home requires a lot of research. But, your research shouldn’t be restricted to just comparing locations and properties. You also need to do your due diligence when shopping for a real estate agent as well as your lender.

When you’re buying your first home, trust in your agent and lender is paramount. So, ask those you trust for referrals to Realtors and lenders. Visit with each and speak to them before you agree to use their services.

In fact, try to choose your agent and lender very early in your buying process. This will enable your relationship with them to grow and in turn, they’ll become valuable resources of information and professional advice while you’re on your home buying journey.

#6: Be Ready to Move

With interest rates starting to climb, competition is going to start getting very fierce, very quickly in 2017. So, if you find a home you love, put in an offer and get ready to move because odds are things will progress quickly. This is especially important if you’re looking at homes priced $200,000 or less. Buyers will be jumping on these properties because with home prices rising, they’re going to want to get in early, and so should you. Good luck!

home buying tips for 2017

Homes.com is the place to dream and discover your ideal home! Are you starting to get the itch to look for your first or next home, but don’t know where to start? You’ve come to the right place! Browse our real estate and lifestyle blog for home buying tips, mortgage guides, DIY ideas, interior design, lifestyle topics, general home inspiration, or just some homes fun. We are sure you can scratch that itch and find all the information and tools you need to help in your home search. Want to start looking at available real estate right now? Head to our home page and check out homes for sale or rent listings all over the country. Happy house hunting!

See more posts by this author

Carson is a real estate agent based out of Phoenix, Arizona. Carson loves data and market research, and how readily available it is in today's world. He is passionate about interpreting these insights to help his clients find and buy their perfect home. Carson got into the real estate industry because he loves the feeling of handing over the keys to a new home to happy clients. In his free time, he works on his backyard bonsai garden and spends time with his wife, Julia.

One Reply to First Time Buyers: What You Need Know to Navigate the 2017 Market

  1. The most important topic in this article is choosing the right professional Realtor to help you through the process. They can help you every step of the way. That piece of mind in having a partner on your side is invaluable.

Leave a Reply

Your email address will not be published. Required fields are marked *