So, you’re ready to find your first home in Maryland. But where do you begin? And what resources are available to help you? Here’s what you need to know as you embark on your homeownership journey:
Who is considered a first-time homebuyer?
The definition of “first-time homebuyer” might be broader than you think. For example, it can refer to a person who has never owned a home, a person who has not owned a home in the last three years, someone who has never owned a home in Maryland, or a single parent who has only previously owned a home with a spouse. The definition may vary by program, so check with your lender and housing assistance providers for their definition of a first-time homebuyer.
How do I find an agent?
With the cost of housing at an all-time high, agents who are REALTORS® are here to help first-time homebuyers navigate challenges in the market and achieve the dream of homeownership. Agents may offer a wide range of services, such as finding available homes that meet your criteria, accompanying you to showings, advising you on negotiating strategies, and more. When interviewing prospective agents, these ten questions can help you determine if they are the best fit for your needs.
What is a written buyer agreement?
In many cases the agent you’ve selected will be required to enter into a written buyer agreement with you before you tour a home together. This agreement will outline the services the agent will provide and what they will be paid for those services.
What are my options for securing financing assistance?
First-time homebuyers have multiple options for financing the purchase of their first home. Discuss the programs that might be available to you with your agent, including:
- Conventional mortgage loans are financed by private lenders, such as banks, credit unions, and mortgage companies.
- Federal loan programs are available for eligible buyers through the Federal Housing Administration, Department of Veterans Affairs, and U.S. Department of Agriculture.
- Maryland Mortgage Program products for first-time homebuyers may be an option depending on your income levels and assistance needs.
- Local governments or non-profit organizations in your area may have programs available to borrowers that meet specific requirements.
Are there other ways I can lessen my cost burden?
Some sellers may offer to pay certain costs associated with purchasing a home for you, which are called concessions. You can also ask the seller to pay for your agent’s compensation as part of your purchase offer. Both are options that may reduce out-of-pocket and upfront expenses, helping you stretch your budget further. Your agent can advocate for you during purchase negotiations on these and other terms.
You can learn more about compensation and concessions in our compensation video series.
What other resources are available?
A great place to start is Maryland Homeownership’s Your Homebuying Keys monthly webinars. These 1-hour sessions allow you to ask questions of industry experts, like a Maryland REALTOR, a Maryland Mortgage Program Lender, and representatives from Freddie Mac and Maryland DHCD.
First-time homebuyers should also consider official homeownership education classes, which provide tools and information to help resolve financial roadblocks, develop a budget, and work on a plan to meet the financial requirements of homeownership. Completing these classes can also help you to secure homebuying grants and loans to assist with your purchase.
For additional information on reaching your homeownership goals, check out our Homebuyer Toolkit, available for download in both English and Spanish.
