If you’re a first-time buyer, it can be easy to look at home prices, mortgage rates, and the amount you need to save and think, “Maybe I’m still a few years away.”
I get it. Saving for a down payment takes time, and when you’re already paying rent every month, it can feel like homeownership keeps moving further out of reach.
But here’s something worth considering: you may not need to wait as long as you think.
There are two things you can control that could make a meaningful difference in how quickly you get into your first home: the price point you target and the size of your down payment.
Start With the Right Price Point
One of the biggest ways to shorten the path to homeownership is to start with a home that fits where you are financially right now.
That might mean a condo, townhome, or smaller single-family home rather than waiting until you can afford the median-priced home in the area.
According to Zillow, it can take significantly less time to save for and reach the point where owning makes more financial sense when you start with a starter home instead of a mid-priced home.
And that makes sense. A lower purchase price means a smaller amount to save, which can move the timeline forward considerably.
Your first home doesn't have to be your forever home.
It can simply be the home that gets you started.
You May Not Need 20% Down
This is another one I hear all the time: “I need 20% down before I can buy.”
Not necessarily.
The National Association of Realtors reports that the median down payment for first-time buyers is 10%. Depending on the loan program and your situation, some buyers may qualify for options requiring as little as 3% down, while FHA loans can require 3.5%. Certain eligible buyers may even qualify for zero-down programs.
There are also down payment assistance programs that may help with some of the upfront costs.
The important thing is not to assume you need to have a certain amount saved before you even start the conversation. Find out what you actually qualify for first.
Look at Your Options, Not Just the Obstacles
Buying a home today does require planning. Affordability matters, and I don't want to minimize that.
But I also don't want a number you heard somewhere to automatically convince you that buying isn't possible.
Maybe your first home is a little smaller than you originally pictured. Maybe you put less than 20% down. Maybe there's a local assistance program you didn't know existed.
Those choices can make a bigger difference than you might expect.
And remember, you're not trying to figure out your entire homeownership journey today. You're just trying to figure out what your next step looks like.
The Bottom Line
If you've been thinking, “I'll buy when I have enough saved,” it may be worth taking another look at the numbers.
A starter home and a smaller down payment could potentially get you into the market years sooner than waiting for the perfect set of circumstances.
If you're a first-time buyer and want to know what that could look like in the Lake Norman area, let's have a conversation. We can look at the options, talk through the numbers, and see what actually makes sense for you.
