Becoming a First-Time Home Buyer:

Becoming a first-time home buyer is an exciting milestone in life, but it can also feel overwhelming and daunting. The process of buying a home involves numerous financial considerations, property searches, and navigating through complex paperwork. However, armed with the right knowledge and guidance, your experience as a first-time home buyer can be smooth and successful.

America's Housing Affordability Problem:

The average home price has more than doubled over the past ten years. As a result, Americans are finding it increasingly difficult to afford to buy a home.

• Median household income in the United States has increased by only about 3.7% per year on average for the past decade. As a result, wages have not kept pace with rising home prices.

• In 2022, the median home price in the United States was $458,200 and the median household income was $70,784. This means that the median home price was 6.47 times the median household income.

* Data cited from internet sources and may not be 100% updated

About Sean Grovier:

Sean Grovier is the External Home Loan Advisor of Golden 1 Credit Union. As a seasoned residential loan officer with nearly two decades of expertise, he primarily aims to streamline his client’s home-buying or refinancing journey. Whether they are stepping into homeownership for the first time, upgrading, investing, or seeking a vacation retreat, he’s to understand their aspirations and tailor solutions to fit attentively. He provides a range of conventional and bespoke portfolio programs, focusing on loan values from $300,000 to $2,000,000. Moreover, he offers specialized programs tailored for professionals in the medical and legal sectors, ensuring his clients receive top-tier service tailored to their unique requirements. At the heart of his practice lies in building and nurturing relationships.

In this Episode:

In this first episode, we delve deep into the intricacies of the Silicon Valley real estate market. Firstly, it's essential to understand its implications for first-time home buyers. Additionally, the episode sheds light on the unique definition of a “first-time home buyer” in the lending world. Surprisingly, even those who haven't owned a home in the past three years qualify. Moreover, with Silicon Valley's median home price hovering around $1.5 million, we discuss the challenges that arise with rising interest rates which potential buyers face.

On the other hand, there's a silver lining for high-tech professionals. Because of their substantial incomes, they can offset these challenges. Furthermore, the episode explores various loan options for first-time buyers in this pricey region. For instance, it covers the popular 30-year fixed loans and also the lesser-known adjustable-rate mortgages (ARMs). We also delve into which loans are best suitable to the buyers needs, and the importance of pre-approvals, highlighting the difference between a regular pre-approval and a fully underwritten one.

Lastly, we share expert advice on bridge loans, home equity lines of credit, and the role of credit scores in loan approvals. This episode is a must-listen because of its treasure trove of information for anyone looking to navigate the Silicon Valley real estate market.