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First-time homebuyers encounter fewer real estate problems

Posted on Wednesday, April 2, 2014 at 8:58:20 AM

Historically, first-time homebuyers have been a driving force behind the real estate market. However, the past few years have been tough on this segment, due to higher residential financing rates and an increase in personal debt.

Thankfully, those conditions appear to be changing, and now first-timers are having an easier time finding their ideal homes. According to Realtor.com, affordable conditions in several markets have helped sales improve. The top of the list included Pittsburgh, Tampa Bay, Fla., and Philadelphia.

"As we head into homebuying season, these markets show favorable conditions for first-time buyers, which is encouraging because these buyers are crucial to the housing market," said Steve Berkowitz, CEO of Move Inc., which runs Realtor.com. "First-time buyers have a widespread impact on the local housing markets. In transitioning from renters to owners, new buyers pay property taxes and other fees and taxes associated with homeownership that benefit local schools and services."

In order for first-timers to find residential financing and their dream homes, they have to pay attention to a few key steps. According to the Boston Globe, the first thing to do is to double-check personal finances. A budget can help the process along, and it will make it easier to get approved for a mortgage. Lending standards can be tight, so buyers should be prepared to present a lot of paperwork and have a firm grasp of their monetary situation to ensure they can afford all monthly payments.