It is no news that the prices of real property have been on the rise, especially in major urban centers and coastal cities. This renders such places unaffordable to average families. Just in San Francisco, the median price of a home in 2018 was estimated to be well over $1 million. Estimates of the U.S. Department of Housing and Urban Development show that families who use over 30% of their household income on housing are cost burdened. This means that such families face hardships regarding basic living costs like healthcare, food, and clothing.
However, bigger cities offer an array of opportunities attractive to first-time home-buyers that small towns do not. This article aims to assist first-time home-buyers in finding the most budget-friendly solution without compromising on the perks of living in a big city.
Las Vegas, Nevada
Las Vegas is popularized in pop culture for its casinos. However, with hot and sunny weather all year round, combined with the surrounding mountainous terrain, this city is perfect for people who thrive in warm climates with a lot of outdoor activity possibilities. The median list price of homes is just under $300,000, with the approximate monthly mortgage coming in at around $1,157. One of the perks is that the inhabitants of this city are exempt from the state income tax.
Lexington is the second biggest city in the state of Kentucky. The sports culture is very strong in this city, as it hosts three major horse races and has the largest basketball arena in the US. It has a thriving manufacturing, trade, education and government industry thus providing an abundance of employment opportunities. The median list price comes in at just above $250,000, making the average monthly mortgage approximately $1,000.
Are you interested in a high-quality academic experience, historical sites, powerful technology and science industries, and coastal life? Baltimore may be the city for you. Not only is it the largest city in Maryland, but it is also an hour away from Washington, D.C., making it great for commuting both within and outside of the country. The median list price for a home in Baltimore is approximately $150,000 with the estimated monthly mortgage coming in at just $612.
Tips to make your first-time home buying process smoother and faster- First Time Home Buyers Programs
Buying your first home has many advantages, but it’s also a huge responsibility. Be sure to consider all the costs, including maintenance and unexpected expenses.
Look at your finances, including your credit report, amount of debt, any late bill payments or financial disputes.
Work with a mortgage expert to get pre-qualified and pre-approved so you feel confident making an offer. Our mortgage experts can explain the differences between a pre-qualification and a pre-approval so that you choose the best option for you.
Establish a budget. Consider your monthly expenses; how much you can save monthly, how much you can put down, and taxes and insurance costs.
Gather the documents you need for a loan application. This includes pay stubs, checking and investment statements, and credit card documents.
Decide what type of loan is best for you—there are government guaranteed loans such as FHA, USDA and VA and conventional loans, fixed rate and adjustable rate.
Do your research. There are many helpful US government resources online, and our mortgage experts also offer resources and guidance.