3 common first-time homebuyer obstacles and how to avoid them

The homebuying process is complicated and takes time, especially if you are a first-time homebuyer. There are many moving parts and components to the process that can quickly change. That means most buyers are bound to have obstacles along the way — but don't let them discourage you.

Below are three of the most common obstacles that first-time homebuyers can encounter early in the process, as well as tips that could help you decide how you want to tackle the homebuying process.

According to a 2021 study from NAR, a lack of affordable homes and a lack of homes that fit a buyer's criteria are primary obstacles to consumers purchasing their home.

As the cost of living and inflation increase, first-time homebuyers may be concerned about how feasible it is to purchase a home — especially if they lack existing home equity to leverage with their purchasing power.

Consider the following if you're looking for creative solutions to find homes within your budget:

Purchase a smaller home
Properties like condos or townhouses are typically more affordable and may be a good option for first-time home buyers looking to move or "upgrade" as time goes on.

Look for properties at a lower price point
While not all properties may fit your long-term or short-term goals, certain homes may fit your needs, even if minor maintenance repairs or cosmetic upgrades are required.

Explore properties in multiple geographical areas
You may find viable properties in an area within your standards for a manageable commute, depending on your situation.

While home affordability can be a common obstacle for consumers, the total amount of available homes can also cause concern.

Home inventory can shrink due to factors that include:

• The status of your area's housing market (including whether it's a buyer's or seller's market)
• How many homes are available in your price range or in your ideal neighborhood
• The amount of competition among other buyers

If you're seeing a lack of home inventory in your area, consider the following questions:

Is now really the right time for me to buy?
If you can wait, it may be worth seeing how inventory changes in your area over time.

What properties are available that fit my needs?
Think critically about the quality of options available in your market and whether those options fit your long-term or short-term goals. You want to find the right home and not settle on important property factors, so think through what elements are negotiable and which are not.

Your minimum down payment will vary based on the mortgage you apply for and your budget. Fortunately, there are options available:

Find the right loan type
Explore lender options on conventional loans, and familiarize yourself with FHA or VA loan options if you qualify for their eligibility.

Utilize homebuying assistance programs
Various loans, grants, and programs may help first-time homebuyers reduce their down payments.

Explore Wells Fargo offers
Learn more about these options, and contact a home mortgage consultant for more information.

Every problem requires its own unique solution. Whether you're early in the research phase or part-way through the process, talk to your home mortgage consultant or real estate agent as obstacles arise and to learn more about additional support for your specific situation.