First-time home buyers
The market is beginning to cool, though buyers are still dealing with limited inventory and high home prices. Navigating this volatile market can be challenging. Check out the resources below to create ease during your home-buying process.
The housing market right now:
▪️ The typical U.S. home value is $360,385. The typical monthly mortgage payment, assuming 20% down, is $1,802.
▪️ New listings decreased by 1.6% month over month in October. Total inventory (the number of listings active at any time during the month) in October fell only slightly from September, down 0.05%.
▪️ 24.8% of listings in October had a price cut. That’s compared to 25% in September and 25.1% in October of last year.
Related: Zillow names the 10 best metros for first-time home buyers in 2024
Getting finances in order
When Zillow asked five questions about credit scores, the average American only answered two of the five correctly. Yet a good credit history is key to getting the best possible loan; here are the four things first-time buyers should do to qualify for the best possible mortgage interest rate.
You may be eligible for down-payment assistance. Learn more >
How much can a first-time buyer afford?
As mortgage interest rates fluctuate, aspiring buyers can start with a mortgage calculator and affordability tools to understand what they can realistically afford on a monthly basis.
Zillow’s affordability calculators take into account some of the hidden costs of homeownership. First-time shoppers should also explore down payment assistance programs they may qualify for.
Related: 6 common first-time buyer mistakes — and how to avoid them
Borrowing options for first-time buyers
First-time buyers can gain a competitive edge by getting pre-approved for a mortgage. A Zillow survey finds 86% of sellers prefer a buyer who has been pre-approved, as opposed to pre-qualified, for a mortgage.
For first-time buyers, persistence is key: Nearly half of all first-time buyers (47%) are denied a mortgage at least once before ultimately being approved.
Related: Top questions to ask a mortgage lender & Understanding down payment assistance.
Finding the right agent is key
Navigating today’s housing market can be confusing and stressful, and acting quickly can be key. The right agent can help; according to Zillow Research, 85% of buyers use a real estate agent or broker.
Related: Benefits of real estate agents for home buyers & Tips for hiring a buyer’s real estate agent
Improving the home search
In a Zillow survey*, nearly three-quarters of successful buyers wish they had done at least one thing differently. Digital tools can simplify the home-shopping experience, helping new buyers more easily home in on the right home.
Related: What to look for when buying a house & 5 expert tips to help home buyers win in this hot seller’s market