A Guide for First-Time Homebuyers
 

Constantly evolving market conditions mean first-time homebuyers have a lot to navigate. Here’s how Wintrust Mortgage can help you achieve your homeownership goals.

Amid rising interest rates, a competitive market, and financial considerations such as saving for a down payment, it’s no wonder why many people are hesitant to take the plunge into homeownership.

Feelings of uncertainty surrounding buying a home are happening all around us, leaving otherwise interested buyers second-guessing whether they can really afford it. In fact, people are holding off on becoming homeowners longer than ever—the average first-time homebuyer was 36 years in 2022.¹

In that same year, 58% of those who had newly achieved homeownership said the home search was “much more time-consuming than expected.” What’s more, a whopping 89% of first-time buyers report they had previously put off buying a home altogether, with nearly half citing financial reasons. Plus, that hesitancy is only in relation to the upfront expenses that many prospective homeowners already know about; 94% of buyers said they experienced unexpected costs during the homebuying process.²

This data lays bare the inherent uncertainty and reluctance that many prospective homeowners face when buying a home for the first time. So, how do you know when you’re truly ready?

UNDERSTANDING MORTGAGES

Starting the process of buying your first home can be overwhelming, but the right support makes all the difference. Let’s start with the basics.

A mortgage is a loan from a financial institution, at a specific interest rate over a specific time period, to help finance the purchase of a home. The home you purchase is used as collateral until the mortgage is paid off. Each month, you pay a portion of the principal loan amount (the sum of the money you borrowed in total), plus interest, property tax, hazard or homeowners’ insurance, and mortgage insurance if applicable.

To help you better understand mortgages, Wintrust built this helpful glossary of terms to get you up to speed on common terminology used when buying a home. And should you have questions that are unique to your situation, Wintrust Mortgage has a nationwide network of local lending experts who live in the communities they serve, and can walk you through the process in detail so you’re never left in the dark.

WHAT TO KNOW ABOUT THE CURRENT HOUSING MARKET

The housing market is always evolving. From fluctuating interest rates to the number of homes on the market, it feels like you’re constantly hearing about buyers’ versus sellers’ markets.

It’s important to consider supply and demand. In general, more housing inventory means less buyer risk, because buyers are less pressured to waive contingencies to beat out the competition. It’s also important to consider both current and forecasted interest rates. Still, the “right time” is relative to a wide range of personal factors—determining if the current market works for you will depend on your individual circumstances.

From considering different loan types to helping you decide how much to pay for a down payment, your friendly experts at Wintrust Mortgage are always here to answer any questions and guide you through the mortgage process—no matter how the market looks.

WHY WINTRUST MORTGAGE COULD WORK FOR YOU

With Wintrust Mortgage's help, even the most intimidating aspects of purchasing your first home can become much simpler.

Wintrust Mortgage offers a huge variety of loan products, many of which are exclusive to our lenders and unavailable elsewhere. This allows our experts to work with customers to find individualized mortgage solutions that may best fit their unique needs.

No matter where you are in the process of finding your dream home, Wintrust Mortgage has experts who can answer your questions, from understanding which kinds of mortgages fit within your budget to closing-day procedures and beyond.

Our loan originators are here to help with one-on-one coaching, simple prequalifications, and special first-time homebuyer programs such as down-payment assistance, to help you reach your homeownership goals.

Learn more about navigating the process for first-time homebuyers. When you’re ready to get started, Wintrust Mortgage offers a confidential and user-friendly application to begin the prequalification process online.