Photo courtesy of Mandy Williams
Mandy Williams, a real estate agent with Keller Williams.
Of all the areas for first-time homebuyers in the Birmingham metro area, Hoover may just be the most accessible, but not without challenges.
According to Mandy Williams, a real estate agent with Keller Williams Homewood, affordability and financing options are key factors influencing buyers in the area.
"Most first-time homebuyers are probably looking more in lower price ranges," Williams said. "But that being said, there are exceptions. Some buyers are able to afford more expensive areas."
For those looking for affordability and available inventory, Hoover might be the best option.
"There is even more opportunity for first-time homebuyers in Hoover," Williams said. "It’s just a matter of inventory. There are more homes available at entry-level price points compared to Homewood or Vestavia."
First-time homebuyers looking in Homewood may find limited inventory and high prices a barrier, she said.
"Homewood is a particularly challenging area because it’s a landlocked community," Williams explained. "There just aren’t a whole lot of houses for sale at any given time, and those that are listed under $500,000 tend to fly off the market in just a few days."
While affordability is a major factor, financing options have evolved in recent years. Williams emphasized the importance of working with a local lender.
"That’s something that I highly recommend, working with a local lender and not just whoever you find on the internet," she said. "Local lenders typically have more access to government-funded programs, especially for first-time homebuyers. There are now conventional programs that allow for far less than the traditional 20% down payment, some as low as 5% and occasionally even 0%."
Not only is the lender a factor to consider, but the type of financing. Sellers often have preferences when it comes to loan types, with cash offers and conventional loans being more attractive to sellers.
"Some sellers choose not to accept VA or FHA loans because they have stricter inspection requirements and longer processing times," Williams said. "That being said, I am a huge supporter of our veterans, and I work with a program called Homes for Heroes, which offers cash back to buyers and sellers who qualify."
Williams stressed the importance of being financially prepared and choosing the right professionals to guide the process.
"Number one, know what you can afford," she said. "Get a pre-approval from a lender with a strong reputation. Some lenders have better track records, and when a seller sees a pre-approval letter from a lender with a solid reputation, that can make a difference in getting your offer accepted."
In addition, having an experienced real estate agent is critical. "You don’t want an agent who’s never sold a home in the area you’re looking at," she said. "Having someone who knows the market can give you a competitive edge."
Finally, first-time buyers should budget for additional costs beyond the mortgage. "You need extra funds for inspections, appraisals, and potential repairs," Williams said. "It’s worth it in the long run to fully understand what you’re getting into before you close on a home."
