(InvestigateTV) — The National Association of Realtors (NAR) predicted 24% of home shoppers in 2025 will be first-time buyers.
Cherry Dale, the vice president of financial education at Virginia Credit Union, urged new buyers to learn as much as they can about the home-buying process before they start shopping.
Dale recommended beginning your research six months to a year ahead of time, noting this preparation makes the experience significantly smoother.
“Attend a first-time home buyer class, there’s many webinars online as well,” she suggested. “Your financial institution probably has resources on their website that can assist you in the process. So, once you get a good understanding, okay this is the process for a first-time home buyer, what do I need to do when it comes to rates?”
Dale highlighted two methods for navigating mortgage rates:
Rate lock products: Buyers can lock into a mortgage rate with a financial institution for up to 360 days. These rate lock agreements often have conditions allowing the locked rate to decrease if market rates fall.
“You have to maintain where are you are in this process,” she explained. “So, for example, if you’ve got a certain amount of reserve or a certain amount of debt you don’t want to incur more debt or deplete your savings either because that will nullify the contract for a rate lock.”
Adjustable-rate mortgages: These loans fluctuate with the market rate, changing the mortgage payment.
Dale said those looking at an adjustable mortgage should be cautious. It’s usually a good option for buyers looking for an initial lower payment or buyers who don’t see themselves staying at a home for a long time.
The Federal Trade Commission (FTC) has free resources on Shopping for a Mortgage.
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