Buying your first home in Albany or Corvallis is a wonderful goal to have in 2023. Don't let stress and jitters overwhelm you. Our real estate agents share some valuable tips for first-time home buyers with helpful data from a recent report. 

1. It's never too early to start saving.
   According to the National Association of Realtors® (NAR), the typical down payment for first-time buyers is six percent, with some loans allowing as little as three percent. While it may seem more convenient in the short term, smaller down payments can cost more due to private mortgage insurance premiums and higher interest rates. The NAR report also indicates that nearly a quarter of first-time buyers use gifts or loans, so don't be too proud to accept help.
   
   
2. Clean up your credit.
   Debt-to-income (DTI) ratio is one of the primary considerations for lenders in deciding whether or not to finance a home purchase. Pay down your bills as much as possible and don't take on additional debt. Be sure to review your credit report and take steps to correct any inaccuracies. Once a year, you can request free copies from the Big Three reporting agencies: Experian, TransUnion, and Equifax.
   
   
3. Know what you're looking for.
   NAR says nearly two-thirds of first-time buyers are motivated primarily by the desire to own their own home. What else is on your wish list? Buying a home is a major financial commitment, so it should fit your needs and wants as closely as possible. Houses can't be returned as easily as a pair of shoes.
   
   
4. Crunch your budget numbers.
   While lenders have specific requirements, all they see are figures on a piece of paper. They're not taking into account clothing, entertainment, food, and other lifestyle expenses. Have you ever seen those expensive, brand-new homes surrounded by dirt because the buyer couldn't afford to landscape? Instead of buying up to your approved amount, get a realistic picture of your monthly expenses and let that determine how much house you can afford.
   
   
5. Do your mortgage homework.
   Not all mortgages are created equal. With names like FHA and VA it may seem like so much alphabet soup at first. The good news is that one of them will be right for you, so educate yourself about all the options. Want more good news? Many government entities and organizations offer first-time home buyer programs, which include various combinations of low-interest rates, closing-cost assistance, and tax incentives. These programs can go a long way toward stretching your down payment dollars.
   
   
6. Obtain preapproval.
   A pre-approval letter is documentation indicating a lender's willingness to loan you a certain amount of money. This is a step beyond pre-qualification, which is simply an informal estimate of how much house you can afford. Receipt of a preapproval letter is dependent on having your financial information confirmed by the lender, so it can demonstrate your serious intent to sellers. This puts you ahead of other buyers who don't have preapproval and may be perceived as window shoppers. 
   
   
7. Tour in-person open houses.
   It's no surprise that technology has transformed real estate. Roughly 96 percent of buyers incorporate online tools in their searches. In the end, there's no substitute for actually visiting a home and letting your senses tell the story. Use online listings and virtual tours to narrow your search and focus on the homes that merit an in-person visit.

NAR statistics indicate that a whopping 86 percent of recent buyers used a real estate agent, praising them as a useful source of information. Contact us at Coldwell Banker Valley Brokers, and let us give your first-time home search the attention it deserves.