A new study by LendingTree places Columbus in the top ten cities for first-time home buyers, ranking us #7 out of 50 major metros. Here’s what the study says about Columbus home buying opportunities!
The study is based on LendingTree’s own opinions of what makes a city “friendly” to first-time buyers, backed by their own in-house statistics. The study evaluated mortgage types, down payments and consumer home buying power, using the following criteria:
- Share of buyers using an FHA mortgage
- Percentage of buyers with credit scores below 680
- Average down payment amount/percentage
- Housing Opportunity Index score
About 38% of Columbus home buyers used an FHA mortgage for their home purchase. While FHA mortgages are not limited to first-time home buyers, this loan type is more forgiving when it comes to less-than-perfect credit. Since Columbus also had one of the highest shares of mortgage applicants with credit scores under 680, this ratio isn’t surprising.
Despite some lower credit scores, the data set used in this study shows healthy down payments. Columbus home buyers averaged a down payment of 14% of the home purchase price, or computed another way, $34,400.
Columbus ranks highly in home affordability in this study. The Housing Opportunity Index measures the share of home sales that are affordable to households with median incomes. Columbus comes in at 74.7%, meaning that most home sale prices were in reach of local median incomes.
We must keep in mind that the LendingTree study only involves mortgage applications processed through their company. While the findings are encouraging, this isn’t a comprehensive view of Columbus market conditions. The biggest challenge facing Columbus first-time home buyers often involves finding homes for sale in their desired price range and neighborhood!
There are myriad pitfalls in the home buying process, and buyers who are under-represented are at a serious disadvantage. If you are a first-time Columbus home buyer, start by reading our free e-book, “How to Buy a Home like a Pro!” There’s no obligation, and you’ll obtain valuable advice about mortgage financing, the home buying process, how to handle condition issues, and more! Click here to download your free copy of “How to Buy a Home like a Pro” today.
As your Exclusive Buyer’s Broker, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.
Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!
Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!
Andrew Show
Exclusive Buyer’s Broker, CEBA-M, MCNE, CSP, PSA,e-PRO, CREM, ABRM, AHWD
Buyer’s Resource Realty Services, www.buyershome.com
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax
