If you’re feeling a mix of anticipation and panic, you’re completely normal! Let’s walk through what you really need to know to navigate this process successfully, especially here in Massachusetts and New Hampshire.

Get Your Finances in Order First

Before you start scrolling through listings online (we know you already are!), take a hard look at your financial picture.

Most lenders want to see a credit score of at least 620, though 740+ will get you the best rates. You’ll typically need 3-20% down depending on your loan type, plus money for closing costs, inspections, and those inevitable moving expenses.

Here’s the thing many first-timers don’t realize: pre-approval isn’t just recommended—it’s essential. In today’s competitive market, sellers won’t even look at offers without it.

A good mortgage broker can help you understand exactly what you qualify for and might find programs specifically for first-time buyers that could save you thousands.

Know Your Local Market

The Massachusetts and New Hampshire markets have their own personalities. What works in Boston won’t necessarily fly in Hampton or Portsmouth.

Some areas are seeing multiple offers on every decent property, while others give you more room to negotiate.

School districts, commute times, and local amenities all play huge roles in both your daily life and future resale value.

Don’t just look at the listing price—research what homes are actually selling for in your target neighborhoods. Sometimes that “great deal” isn’t such a deal after all.

The Hidden Costs Nobody Talks About

Your monthly payment isn’t just principal and interest. Factor in property taxes (which vary wildly between towns), homeowner’s insurance, possible HOA fees, and ongoing maintenance.

A good rule of thumb? Budget 1-2% of your home’s value annually for maintenance and repairs. That roof, furnace, and water heater won’t last forever.

And speaking of costs, don’t forget about the inspection. Never, ever skip this step. Spending $400-600 upfront could save you from discovering a $15,000 foundation problem later.

Timing and Strategy Matter

In our local markets, spring and summer are typically busier, which means more competition but also more inventory.

Fall can offer opportunities as sellers who’ve been on the market all summer become more motivated. Winter? You’ll have less to choose from, but serious sellers who list then are often eager to make deals.

When you find “the one,” be ready to move fast. Have your financing lined up, know your absolute maximum budget, and understand what terms might make your offer more attractive beyond just price!

Don’t Go It Alone

This process involves contracts, negotiations, inspections, appraisals, and legal documents that can make your head spin.

A good real estate agent isn’t just someone who unlocks doors—they’re your advocate, negotiator, and guide through a complex process. They know the local market, can spot red flags you might miss, and help you avoid costly mistakes.

Look for an agent who understands first-time buyers, communicates clearly, and has strong local connections. You want someone who’ll tell you the truth, even when it’s not what you want to hear.

Trust the Process (But Stay Alert)

Buying a home involves a lot of waiting—for loan approval, inspections, appraisals, and final paperwork.

It’s normal to feel anxious during these periods, but remember that each step exists to protect you.

Use this time to research moving companies, start thinking about immediate needs for your new home, and maybe start shopping for that lawn mower you’ll suddenly need.

You’ve Got This!

Yes, buying your first home feels overwhelming, but thousands of people do it successfully every year.

Take it one step at a time, ask questions when you don’t understand something, and remember that this is supposed to be exciting! You’re about to own your own piece of Massachusetts or New Hampshire.

The key is working with professionals who understand both the market and the unique challenges first-time buyers face. With the right guidance, you’ll navigate this process successfully and get the keys to your new home before you know it.

Ready to start your home buying journey? The experienced team at Laffely Real Estate Associates has been helping first-time buyers navigate the Massachusetts and New Hampshire markets with personalized, local service. Don’t tackle this alone—call us at (978) 255-4788 to discuss your goals and get started on finding your perfect first home!

The post The First-Time Buyer’s Survival Guide: What You Need to Know appeared first on Laffely Real Estate Associates.

A Realtor.com post from October 16th titled, “10 Things Most Homebuyers Get Wrong About Getting a Mortgage Today,” looks at common mistakes and provides insight to help home buyers navigate this process. 

1. Focusing too much on the interest rate.
   Be sure you understand any fees that could go along with the rate you’ve secured.
2. Assuming you need a 20% down payment.
   You can put down less, but will need to factor in private mortgage insurance.
3. Assuming you can get a loan instantly.
   There are applications, phone calls, document collection to consider… It takes time.
4. Thinking pre-qualification means you are approved for the loan.
   Pre-approval is more valuable, as it shows the lender has looked at your finances.
5. Not considering first-time homebuyer programs.
   Explore these options, and how they help free up savings.
6. Failing to check your credit score.
   Knowing your score before speaking with a lender is key.
7. Picking the wrong type of loan.
   There are pros and cons to each, do some reading to get a basic understanding.
8. Understanding fees beyond the down payment.
   Yes there are other fees when buying a home, i.e. closing costs, title, transfer taxes, etc.
9. Not preparing for the possibility of a low appraisal.
   With high listing prices this is a reality. Another recent post covered ways to deal with a low appraisal; ultimately you’ll want to consider what you are comfortable paying when making an offer.
10. Not shopping around for the right lender.
    Reliability is key, especially in today’s market when getting a response from a lender so you can make an offer is top priority. 

Bottomline if you want to avoid these common missteps that can trip up first time home buyers, or really anyone looking to buy a home in today’s market; understand your options, do your research and have a team of local professionals on your side.

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If you are in the process of or preparing to buy a home, you’ll want to read this post from realtor.com, “Home Buyers’ 7 Biggest Regrets: How Many Will Haunt You?,” and heed the warnings of home buyers that have come before you. In the post, they share seven tales that feature stories of home buying remorse.

#1. Putting off house hunting until the last minute

#2. Overlooking schools, even if you don’t have kids

#3. Caving to a seller’s every demand

#4. Buying too big

#5. Overlooking small details

#6. Skimping on the number of bedrooms you actually need

#7. Underestimating walkability

Remember these stories when searching for your next home, or first home. No matter the market, you’ll want to make sure you end up with a treat; rather than the trick of regrets.

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The main purpose of these rate hikes, according to the recent Bankrate.com article “What the Fed’s May rate hike means for homebuyers and sellers,” is to calm inflation. The Bankrate.com article goes on to point out that the housing market tends to be resilient in general. This is because mortgage rates often have no bearing on the life events that lead to a move.

I found this information given in the article very telling of this point. The article notes, “History bears this out. In the 1980s, mortgage rates soared as high as 18 percent, yet Americans still bought homes. In the 1990s, rates of 8 percent to 9 percent were common, and Americans continued snapping up homes. During the housing bubble of 2004 to 2007, mortgage rates were higher than they are today — and prices soared.” (Ostrowski and Petry)

Mary Marengi of Academy Mortgage also shared her thoughts on this topic in a recent post titled, “Homebuyers want to know: Why a 3rd Fed hike?” In this post, she also points to the fact that a Fed rate hike has no direct bearing on mortgage rates. Rather, she notes how it could be a good thing, saying, “…the Federal Reserve’s efforts to calm inflation may be welcome news to you. Mortgage rates typically rise in times of inflation. If inflation cools, mortgage rates are likely to follow suit.” (Marengi)

So, if you are thinking of buying, know there’s a light at the end of the tunnel. If you do buy now while rates are high, you will always have the opportunity to refinance when rates come down. In Marengi’s post, she also notes these key points regarding buying a home:

• Homeownership is historically considered a reliable hedge against inflation.
• Home price growth is moderating.
• Homeownership can still help you build prosperity. (Marengi)

In the end, do your homework. Read these articles, talk with a lender and even a local realtor to get a sense of the market in the area you plan to buy. After doing the due diligence, only then can you make the best decision for your next move.

Sources: 

Marengi, Mary. “Homebuyers want to know: Why a 3rd Fed hike?” Academy Mortgage Corporation. 3 May 2323, https://academymortgage.com/learning-center/fed-rate-hike?lo=Mary-Marengi. Accessed 9 May 2023. 

Ostrowski , Jeff, (Edited by:Michele Petry). “What the Fed’S May Rate Hike Means for Homebuyers and Sellers.” Bankrate.Com, 3 May 2323, www.bankrate.com/real-estate/how-fed-rate-hike-affects-housing/. Accessed 9 May 2023. 

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A recent Realtor.com blog post quotes Casey Ames, Owner and CEO of Taylor Jene Homes in Boise, ID, who notes, “The key to buying a house on the cheap is knowing how to balance achieving your dreams while staying within your budget.”

The blog goes on to discuss options for down payment assistance to help alleviate some of the cost when buying a home in today’s market. These tactics include:

1. Get a low-down payment—or no-down payment—loan
2. Look into down payment assistance programs
3. Use a family down payment gift
4. Consider auctions, short sales, and more

While these options may not work for all of those in the market for a new home, they are worth exploring to see if they can help you. This is definitely a leave no rock unturned real estate market, so make sure you do your research when it comes to financing, buying and/or selling; and be sure to schedule some time with a local mortgage expert and real estate agent. They can help you best understand your options.

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With yesterday’s news that the Federal Reserve (aka the Fed) may raise interest rates again, many homebuyers may be considering what their next move is.

Do they continue to house hunt?

Is now still the right time to buy a home?

Should they leap at the next house that becomes available?

Since buying a home is a big decision, these questions are always swirling. However, with the current housing market, they are more commonplace. One thing is certain, homebuyers should not panic. Panic leads to mistakes. The market always has its ups and downs, but any decision made should be based on the day-to-day needs of the prospective homebuyer.

Today’s blog post from Realtor.com, “The Massive Mistake Homebuyers May Be Tempted To Make Right Now: Is This You, Too?,” highlights concerns buyers have; especially when the market is unpredictable.

Example of Buyer Mistake

The post shares the story of buyers that put their housing search on hold. Their thought was prices would come down, but instead prices continued to rise. They inevitably panicked and purchased the home they were renting, even though it was too small and the layout didn’t suit their family. This is considered “FOMO buying” by an agent with Pacific Sotheby’s International Realty in San Diego. Fear of missing out should not be the reason to purchase a home…ever.

As Realtor.com’s Chief Economist Danielle Hale notes, “It is not a good idea to try to time the market. No one has a perfect view into the future. Whether you think rates or prices are going up or going down, the world may not evolve the way you expect it to. We all have to make decisions with that uncertainty.”

If you are in the market to buy a home, you’ll want to read through this post. Next step, meet with a realtor in the area of your home search. They will be able to guide and advise you to make the best decision based on your needs alone; not the ups and downs of the housing market.

Photo credit: Marco Verch Professional Photographer on Flickr. This image is available under Creative Commons 2.0.

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With the current state of the market and the high rate of inflation over the past year, it is imperative now more than ever that you know what you want and what you are willing to take on when buying or selling a home. This will include your needs now and in the future. First step is always to write things down; think pros and cons list but this time you’ll be answering specific questions to help you define your goals.

A blog post from Keeping Current Matters from January 2^nd of this year highlights the key questions you should be asking yourself if you plan to enter the housing market in 2023. These include:

• What’s Motivating You?
• What Does Your Next Home Look Like?
• How Ready Are You To Buy?

Go ahead; answer these questions. Even with uncertainty in the market, you’ll know for certain what you are looking for. Once you have that piece, local experts from mortgage professionals to realtors are ready to step in and help you reach your goals.

The post Your Housing Market Goals in 2023 appeared first on Laffely Real Estate Associates.

A recent article posted on Bankrate notes that 2023 will be a transitional year with several factors creating uncertainty. The article looks at each of these factors in depth, calling on industry experts for their predictions. We’ve summarized here, but the full article is worth a read.

Mortgage and Interest Rates

With continued inflation, many experts believe rates will continue to rise for some, if not all, of 2023. The experts cited in the article all see interest rates in the 8 percent range at some time during the year. However, predictions are mixed on whether they remain there or stabilize toward the end of the year.

Housing Sales

The consensus here is that the market will cool down. Higher interest rates will lead to a drop in home sales. Experts also believe that average days on the market will increase in 2023, as buyers are more hesitant to jump into a purchase situation.

Home Values

Experts are split on where home values will land in 2023. Some believe home values will remain steady due to low inventory; while others suggest that home values could see a decline based on higher rates and more patient buyers.

Buyer’s or Seller’s Market

We’ve been in a steady seller’s market for the past few years, and many experts see this shifting slightly. One expert notes it will vary nationally, however. Markets with more demand could continue to favor the seller. That said another expert believes the sides may be on more even terms overall in the year ahead.

Housing Inventory

Low inventory has fueled the housing frenzy over the past few years. Experts believe this will not change; mainly due to the fact that homeowners won’t be willing to trade in their low interest rate mortgages for a higher rate loan. However, there are some that believe housing inventory could increase based on demand throughout the year.

Affordability

Experts do agree that home prices will not waiver significantly. We may see prices lower slightly, but any shift in prices will be cancelled out by rising interest rates. Some experts believe that in certain cases this could make homes seem even less affordable due to high interest rates and the amount they add to a monthly payment.

As with any forecast, no one can predict the future. We can only wait and see how the year unfolds, and remember that local experts and agents can provide the best insight into the market in your area. They are the best resource if you are looking to buy or sell in 2023.

For a deeper dive into the housing market in 2023 and these topics, you’ll also want to look at Realtor.com’s predictions.

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Calmer Market Ahead

Expect some easing in sales, though prices will continue to inch higher

By Lawrence Yun (originally printed in the Spring 2022 issue of Realtor Magazine)

The past two years have been quite exceptional for real estate. Home sales boomed. Home prices rose at the fastest rate in modern times. However, such a strong housing market created growing pains. Inventory shrank to its lowest count ever. Even through the recent winter months, the inventory that has made it onto the market has typically attracted multiple bidders—and, increasingly, investors offering cash. Twenty-two percent of recent transactions were investor purchases, up from 15% a year ago, and 27% of transactions were cash-only deals, up from 19% a year ago. That’s putting a strain on first-time buyers. Moreover, mortgage rates are notably higher as the Federal Reserve moves from a quantitative easing monetary policy, quickly buying up mortgages, to what is in essence a quantitative squeezing that does the opposite. With all this in mind, what’s ahead?

Let’s begin with the jobs picture. Although the unemployment rate is back to normal at 4%, the economy is still short by nearly 3 million jobs compared to before the pandemic. But that hasn’t held back housing sales. Existing-home sales reached 6.12 million in 2021, the best since 2006. The median home price reached an all-time high of $347,100, a one-year gain of 16.9%.

A few states actually have more jobs now than before the COVID-19 days. They are Utah, Idaho, Texas, Arizona, Georgia, and Montana in order of performance. Those are also the states experiencing extra strong real estate activity, both in residential and commercial markets. Jobs are important.

What now, given the diminishing pandemic— fingers crossed—and rising mortgage rates? Office workers will need to get back to the office. Maybe the new work model will be some form of hybrid, with a few days each week spent in the office. This still means locational choices do not have to be inherently dependent on big-city downtowns. It’s fine to live farther from the city, given less time spent on the commute. Higher mortgage rates, though, will lock out some would-be buyers. In very high-cost areas, the increase means about $500 more in monthly mortgage payments for the typical borrower. Consequently, home sales will come down 2% to 4% in 2022. If inflation remains stubbornly high and the Fed is forced to be even more aggressive, then home sales could fall by as much as 10%.

Prices will keep rising, though, since getting to a balanced market will take time. The turnaround may occur by the middle of the year. Expect calmer home price gains of 3% to 6% per year in 2022 and 2023.

Reprinted from REALTOR® Magazine by permission of the National Association of REALTORS®. Copyright 2022. All rights reserved.

Photo by Sonja Langford on Unsplash

About the Author: Lawrence Yun
Chief Economist and Senior Vice President of Research at the National Association of REALTORS®

Yun oversees and is responsible for a wide range of research activity for the association including NAR’s Existing Home Sales statistics, Affordability Index, and Home Buyers and Sellers Profile Report. He regularly provides commentary on real estate market trends for its 1.3 million REALTOR® members.

Dr. Yun creates NAR’s forecasts and participates in many economic forecasting panels, among them the Blue Chip Council and the Wall Street Journal Forecasting Survey. He also participates in the Industrial Economists Discussion Group at the Joint Center for Housing Studies of Harvard University. He appears regularly on financial news outlets, is a frequent speaker at real estate conferences throughout the United States, and has testified before Congress. Dr. Yun has appeared as a guest on CSPAN’s Washington Journal and is a regular guest columnist on the Forbes website and The Hill, an “inside the beltway” publication on public affairs.

Dr. Yun received his undergraduate degree from Purdue University and earned his Ph.D. from the University of Maryland at College Park.

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Mortgage rates were expected to rise in 2022. At an all-time low in 2021, many forecasted that mortgage rates would rise gradually and end this year in the high three-percent range, according to a recent blog from Keeping Current Matters. However, we are only in April and mortgage rates are already steadily increasing; with recent numbers from the likes of Freddie Mac and Mortgage News Daily anywhere from the high four percent mark to just over five percent.

With this in mind, let’s turn to the real estate market. Common knowledge says when mortgage rates go up, home price growth should go down. However, we are still seeing home prices and multiple offer situations on the rise; especially in our local markets.

So, why are we not seeing home prices steadily decline with rising interest rates? First point, it’s not black and white. There are other factors in play beyond interest rates when looking at home value. In a recent blog by The Mortgage Reports’ Editor Paul Centopani, he writes, “To be clear, interest rates do not directly correlate with home prices, and vice versa. However, low rates stoke home buyer demand and higher demand leads to higher sales prices.”

Buyers also need to consider the lack of inventory which is keeping home prices inflated. Centopani’s post quotes Beeline Co-Founder and COO Jess Kennedy, who states:

“When you look at where the housing market is right now, you still see big gaps between available supply and demand. Until that demand is lowered due to rising rates, housing prices won’t go down.”

The Mortgage Reports blog also notes that the cost of renting versus owning a property also comes in to play. With inflation driving rent prices up, home ownership could still be the most affordable path. Why? Because even with rates in the high fours, they are still lower from a historical perspective.

After you’ve read these articles and with all this information in mind, if you are considering a move in 2022 you’ll want to stay informed of current market conditions. The best way to do this is to seek council from local lenders, underwriters and real estate professionals, who know and understand market conditions in your area.

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