The Confident Plan for First Time Homebuyers
Follow the example of Yovana Perez who is a first generation homebuyer in Modesto
First time home ownership can stir up hesitation, some confusion, even a fear of taking a step that can look intimidating before you’ve gone through the process of buying your first home. But, the fact is that people from all situations, including first-generation homebuyers, can take the steps to home ownership and start building the wealth that comes with home ownership.
Ed Parcaut, President of Lending for Living, and host of the Real Estate Jerky Radio Show on iHeartRadio on Saturdays and Sundays, heard throughout Modesto and surrounding region had first-generation homebuyer Yovana Perez on the show in February.
Yovana’s story is worth telling because it is a story shared by many, many people in and around Modesto. Yovana is 24 years old, her husband is 28 and they have two young children. Like so many, they were looking at the rental market and found that the prices were high, really high. It was at that point they started saving for a new home.
This was just the beginning of a well-planned path to home ownership for Yovana and her family. Although home ownership was not a goal her parents could accomplish, she made a plan and stuck to it in order to become a successful homeowner. The plan took three years for Yovana to move from being a renter to an owner, but the important thing was they started on their plan and stuck with it.
“Three years ago, the prices were completely different,” admits Yovana. But, that didn’t stop them from moving forward, doing what they could to get to where they wanted in the market. “We were looking for a house [priced] below $350,000 and this market that was very, very hard to find. So we had to increase and started looking above that range. And that’s how we were able to find our first home.”
So how did Yovana and her family purchase a home that was more expensive than when they first started looking?
Yovana lays it all out clearly:
“So we started saving money. I’d say probably about two years ago a paycheck or half a paycheck, you know, whatever we could at that time. We had to take advantage of where we were at and start saving as much as we could. And, then we actually started to work with the real estate agent in December last year. That’s very important. I feel like with the mortgage broker we chose we were able to get a 2.5% interest rate on our first home and that’s very important.”
Inside those actions were a series of decisions that quickly moved Yovana and her young family into home ownership. For example, Yovana and her husband were crystal clear about improving and safeguarding their credit score. It made the finance application process simpler and gave them better rates in their agreement.
Then, they trusted and listened to the professionals with whom they chose to work with. It made evaluating properties and making offers simpler and faster.
They were able to have a small amount of extra cash for repairs and renovations (which they did themselves), putting slightly less expensive properties on their list of potential homes. She chose a realtor with a background in property maintenance who could help them evaluate what needed to be done.
And, they ended up with a home that Yovana and her family love. The location, the quirks and features, pretty much everything about the home, “You know, it’s unique and that’s what we like about it. It’s an older home. The backyard is so beautiful.”
So much of a great first-time home buying experience comes down to the team you choose. Your realtor and your lender. Even in a quickly moving market, there are options and a great team to guide you really lowers the stress.
Follow Yovana’s plan if your goal is to share Yovana’s experience, “I didn’t have any surprises. Everything was really smooth. It was positive. It wasn’t stressful, which I really like. You know, as a first time home buyer, you don’t want to be dealing with stress.”
Once you’re in your first home the hard work and planning pays off. And, you’re on your way to building equity and generational wealth for you and your family.
Something To Chew On
By Ed Parcaut
What happens after you buy?
“You have control of it. You have a mortgage but you own that home. That is your home.
As it appreciates every month, it goes, you know, as it goes up in value, it’s your home that appreciated.
If it goes the other way, it’s still your home. But most of the time on average, homes appreciate, they don’t stay low forever as we’re seeing in our market right now. So I think it’s very important for people to purchase.”
Find out our approach to generating wealth through Home Ownership.