PORTLAND — Some first-time home buyers are getting into homes, said Derrick Buckspan of Buckspan and Deering ReMax Shoreline.

At a time where there are often multiple offers on the same property, or the house is on the market a few days before going under contract, Buckspan shared what buyers who aren’t wealthy should do to find their home.

“In our culture we want to look at the house first. It’s human nature.” Don’t do that, said Buckspan, president of the Greater Portland Board of Realtors. People see homes for sale online and go look at it. “Try not to enter the process that way. A first-time home buyer is much better off to take the time and put a team together. Get pre-approved (for a loan). Dig into the process. Do some homework.”

The team should be a loan mortgage broker and a realtor, and ultimately a title attorney, Buckspan said.

Work with a real estate agent who is exclusively representing you, the buyer, not the seller, said Aaron Bolster, president of the Maine Association of Realtors.

“Sit down with them and have a plan. You must have a strategy in today’s market,” Bolster said. “Don’t run out and look at homes.”

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Buckspan also recommends when looking at a property, show up with a letter showing you’re pre-approved.

Maine State Housing Director Daniel Brennan agreed that a first-time buyer must have a game plan. Before shopping buyers should be “accessing your credit rating, talking with banks to see what you’re eligible for,” and weighing that with your own comfort level.

A few other steps to consider, Buckspan said, is don’t do things that can hurt your credit score. When trying to buy a home is not the time to run up credit card spending or take out a loan for a boat since a lower credit score can impact your financing

And, try to have a flexible living situation, Buckspan said. A  month-to-month rent agreement gives a buyer an easier time to move than being three months into a one-year lease.

Buying a home “may not be an easy process, but owning a home is the American dream,” Bolster said. “Buyers need to keep their eyes on the prize.”

The long-term benefits of owning are several, he said. The National Association of Realtors reported in 2021 the median wealth for a tenant family is $8,000, the median wealth for a homeowner is $297,000.

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There is help available for first-time home buyers through the Maine State Housing Authority.

The MSHA, or MaineHousing, has a First Home Loan Program that provides low, fixed interest rate mortgages, and options to buy with little or no down payment.

To qualify applicants must have a minimum credit score of 640. The program limits the price of the property (example: single-family home can be no more than $353,370 in the Greater Portland area, a higher price is allowed for apartment buildings), and annual incomes (example: a single person or couple’s income can be no more than $100,300 a year).

The property cost limit makes it tough for buyers in the Portland area where most homes cost more, said MaineHousing’sBrennan.

MaineHousing also has a program that provides $3,500 in grant money for the down payment and closing costs, providing the buyer has taken a Home Buying course.

According to MaineHousing, between 900 to 1,000 Mainers people per year become homeowners for the first time each year because of the program. More information can be found at mainehousing.org/homeloan.

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Despite all the assistance, Bolster acknowledges it is harder for today’s young adults to buy compared to their parents,  but earlier education about budgets, saving and spending, understanding the importance of credit scores would be a big help.

“High school and college students need to start thinking of home ownership now,” not when they’re 30 or 35, he said. “That’s not popular. Today’s youth are maturing later in life.”

Smart early decisions about how much to borrow for college, what to spend or save, can help an individual get into a home, Bolster said.

“Students need to be more focused. I’ve met so many youth who haven’t borrowed money who are signing student loans with no idea what they’re doing. We need more education, especially for the native Mainer.”

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