The First-Time Homebuyer's 7 New Year's Resolutions

Dusty Rhodes • January 20, 2020

I love the new year! Starting fresh, getting ready for new opportunities, setting new goals for yourself and your life. There's something so liberating about it. You leave all your baggage behind in the new year with the decorations you take down and store for the next fall and winter. It's an opportunity to start your year off with a clear mind and with a path in sight for this new one. And if you're buying your first house this year, you already know that you're about to experience a whole new chapter of your life! This week, homes.com will be giving us some inspiration on the 7 New Year's resolutions every first-time homebuyer should be setting.


Perhaps the three most serious mistakes most first-time homebuyers make are failing to give themselves enough time to put together a down payment, failing to improve their credit and not paying down as much debt as possible before they start shopping for a home. These can take months to complete, and should they find their dream home, they won’t be in a position to make an offer or get a mortgage.


Many buyers also not give themselves enough time to make a budget for the purchase, including down payment and closing costs and a budget for monthly living expenses afterward to determine what they can reasonably afford. Before they can realistically house hunt, they will need to decide on a list of “must-haves” that includes location, find an excellent real estate agent and find a lender.


If 2020 is to be the year you want to become a homeowner, here are seven New Year’s resolutions that will help you not only buy your first home, but be able to do so comfortably and happily.


Resolution #1. Save for a Down Payment and Closing Costs

Unless you are a veteran who qualifies for a VA mortgage, which requires no down payment, you will need enough cash on hand for a down payment and closing costs. A recent survey found that nearly half of millennial renters who want to become homeowners have not saved a penny towards a down payment, even if you choose a 3% low down payment loan like those offered by Fannie Mae and Freddie Mac, you are going to need $6,000 for a down payment on a $200,000 home. Most young families will need six months or more to save that much. A few lenders offer “zero down” mortgages to first-time buyers, but only to borrowers with excellent credit.


Some first-time are turning to their families for gifts to get them over the down payment hump. These must be gifts, not loans. But lately, the “bank of mom and dad” has been drying up. In 2019, 17.4% of millennials were expecting support, down from 19.1% in 2018. Those who expect help in 2019 are expecting less ($8,928) than they did last year ($9,878).


If you haven’t started saving yet, reduce your living expenses as much as you can and put away as you can with every paycheck. Pay yourself first to make sure you are putting away enough to reach your goals. Don’t save cash by using your credit cards to pay living expenses. You will quickly increase your debt load, which will lower your credit rating. You will also increase your debt-to-income ratio, which could kill your chances of getting a mortgage. Even if you do get approved, you will be offered a higher interest rate.


Closing costs like title insurance, appraisal, settlement fee, home inspection, and lenders’ expenses are beyond your control and are required to be paid at settlement. Most closings these days take place six weeks or so after the seller accepts your offer. Closing costs are generally 5% of the home price, but they vary significantly by state. Here’s a state-by-state list of average closing costs in 2018.


Resolution #2. Reduce your Debt

Lenders look at debt-to-income ratios to see if you will have enough each month to handle a mortgage payment in addition to your monthly debt payments. Your debt-to-income ratio is the of all your monthly debt payments divided by your gross monthly income. The average debt-to-income ratio (DTI) for all recently approved mortgages is 24/37.


You can improve your DTI either by making more money or paying off some of your debt. Review your current debt load and pay off those that have the smallest balances.


Resolution #3. Improve Your Credit Rating.

Your credit score and credit history will also determine whether or not you will get a mortgage and how much interest you will pay. Lenders to whom you apply will pull your credit and carefully review your record. The average credit score for all mortgages is currently about 736.


Credit scores change every month, and you should monitor yours and review your credit history on each of the three major credit bureaus: TransUnion, Experian, and Equifax. If you need to improve your credit, then it should be at the top of your resolution list to do so– here are some tips on improving your credit. Like saving for a down payment and reducing your debt, it takes months to improve your credit. However, you can keep working on your credit until you find a house to buy and apply for a mortgage.


Resolution #4. Get Pre-approved by a Lender.

When you’ve done the best job on your credit and debt, ask a lender to pre-approve you before you to home shopping. With a pre-approval in hand, you will be in better shape to make an offer. If your credit or DTI continues to improve, you may be able to get a new pre-approval for a larger loan.


Resolution #5. Decide Where You Want to Live.

It’s no secret that first-time buyers are facing the worst affordability crisis in decades. Supplies of all homes improved slightly last year, but most economists don’t expect it to get much better and hotter markets may have even fewer homes than last year. Unfortunately, smaller starter homes popular with first-time buyers are harder to find than larger homes.


Inventories and prices vary greatly. Larger coastal metros are the most expensive, but properties in smaller cities are generally more affordable.


If you live in a high priced market, is relocating a possibility? Could you find an excellent job in your field or work virtually? If so, you might surf locations that appeal to you. Check out prices and the supply of affordable homes. You might be surprised at how much reasonable some markets are.


If relocating isn’t in the cards, try to enlarge the areas you would like to live in your current metro. The larger the area you consider, the more listings you will find. If you are moving from an urban rental to am exurb, you might a longer commute will make to become a homeowner faster than staying where you are,


Resolution #6. Make a Realistic Budget for Living in the Home You Buy.

Nearly two-thirds, 68%, of millennial homeowners said they had regrets about their home purchase, and 18% cited unexpected maintenance or hidden costs as their greatest pain point, a Bankrate survey found last year.


Your monthly mortgage is just one of several costs of homeownership. Many first-time buyers fail to plan for insurance, maintenance, taxes, utilities and homeownership association fees are some of the expenses that can strain your family budget. When you decide to make an offer on a home, ask your home inspector for rough estimates of significant repairs or upgrades you will have to make soon. (Better yet, ask the seller to lower the price of the home to cover major expenses, or require him to make the repairs himself). Plan to set aside 1% to 2% of the value of your home each year for upkeep. These expenses, as well as your monthly mortgage payments, will increase with the cost of the home you buy.


If your budget comes in at a level for more than you can comfortably afford, you will have to reduce your mortgage and the amount you can spend to purchase a home.


Resolution #7. Stick to Your Budget.

By making a good budget and sticking to it religiously will save your family from years of living “house poor.” Promise yourself and your family that you will stick to your budget. Don’t assume that the maximum amount that a lender will lend you is the maximum you can afford. His number does not take into account all the expenses you have listed in your budget. It’s merely a number based on your credit score, your debt and don’t get caught in a bidding war for your “dream house” and offer more than you can afford. You may lose the deal but find another house next week that you will like just as much and can also afford.


**BONUS RESOLUTION** Don’t Give Up Easily.

There is no question that these are tough times for first-time buyers. A recent survey found that 12.3% of millennial renters who would like to become homeowners have given up homeownership and plan to rent forever.


After you have given your best effort and can’t find the right house at a price you can afford by the late summer or fall, this might not be your year. Pack it in until 2021. As you continue to save, improve your credit, and reduce your debt, you will be in a better position to buy a home.




Source: homes.com


Dusty Rhodes Properties is the Best Realtor in Myrtle Beach! We do everything in our power to help you find the home of your dreams. With experience, expertise, and passion, we are the perfect partner for you in Myrtle Beach, South Carolina. We love what we do and it shows. With more than 22 years of experience in the field, we know our industry like the back of our hands. There’s no challenge too big or too small, and we dedicate our utmost energy to every project we take on. We search thousands of the active and new listings from Aynor, Carolina Forest, Conway, Garden City Beach, Longs, Loris, Murrells Inlet, Myrtle Beach, North Myrtle Beach, Pawleys Island, and Surfside Beach real estate listings to find the hottest deals just for you!


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Maximizing Storage in a Two-Bedroom Apartment

By Dusty Rhodes • September 15, 2025
Moving into a two-bedroom apartment often feels like a big upgrade. There’s an extra room, maybe more closet space, maybe even a balcony. But before long, that extra square footage starts to disappear. Boxes stack up, closets overflow, and the second bedroom turns into a catch-all. The truth is, space isn’t just about how much you have. It’s about how well you use it. Why Extra Rooms Fill Up So Quickly Two bedrooms can create a false sense of abundance. One room is for sleeping, the other is supposed to be flexible: an office, a guest room, or storage. But once daily life settles in, that second space often becomes a little of everything and a lot of nothing. A bed covered in laundry, a desk buried under papers, a closet that won’t close. Sound familiar? The challenge isn’t only fitting more in. It’s making sure the things you own feel organized and intentional. Furniture That Works Beyond Its Job One of the most effective ways to save space is to look at furniture differently. A coffee table with a hidden compartment. A bed frame with drawers underneath. A bench at the entryway that opens to store shoes. These aren’t just stylish pieces; they’re practical solutions. Retailers from IKEA to West Elm offer versions that balance design with function. When you think about it, every piece of furniture is either working for you or taking up space. Choosing the right pieces can make the difference between clutter and comfort. Some apartments are already designed to make storage easier. For example, look at these two bedroom apartments in Denver Colorado from Station A. The layouts include open kitchens and spacious bedrooms that give you a little extra breathing room before you even add furniture. Use the Walls, Not Just the Floor Floors fill up fast, but walls often sit empty. Floating shelves, wall-mounted racks, and hooks behind doors all free up ground-level space. Even the space above a doorway can hold a slim shelf for books or baskets. Tall furniture also helps. A floor-to-ceiling bookcase, for example, not only adds storage but also draws the eye upward, giving the room a sense of height and airiness. Making Closets Work Harder Closets look spacious when empty, but once coats, shoes, and bags pile in, they quickly feel cramped. The key is layering. Hanging organizers, stackable bins, and slim shoe racks create levels where there was only one. Vacuum-sealed bags for out-of-season clothing can cut bulky items down to a fraction of their size. Opening a closet and finding everything in its place may sound small, but it changes how you feel about the whole apartment. Hidden Spots You Might Miss Every apartment has underused corners. The space under a sofa, the gap above the kitchen cabinets, the wall space beside a fridge, or even the narrow strip between the washer and dryer. With the right bins, baskets, or rolling carts, these forgotten areas can become useful without making your home look crowded. A Quick Word on Digital Storage Storage isn’t always physical. Old laptops, stacks of paper, and tangled cords take up room just like bulky furniture does. Moving documents online, consolidating devices, and recycling outdated electronics can free up real space while cutting visual clutter. Rotate with the Seasons One of the simplest tricks is seasonal rotation. Think of your apartment like a store changing its displays. Keep only what you need right now in easy reach. In summer, pack away heavy blankets and coats. In winter, box up patio cushions and fans. This way, storage works on a cycle instead of becoming permanent clutter. Keeping Only What You Use It may seem contradictory to talk about maximizing storage and also suggest owning less, but the two go hand in hand. The fewer unnecessary items you keep, the more room you have for what matters. A helpful guideline is the “one-year rule.” If you haven’t used it in a year, it probably doesn’t need to take up space in your apartment. Letting go of items can be surprisingly freeing. That rarely used kitchen gadget, the stack of magazines you meant to read, or the exercise gear gathering dust—they’re not making your apartment feel larger. They’re weighing it down. Final Thoughts Maximizing storage in a two-bedroom apartment isn’t about cramming more into closets or stacking boxes in corners. It’s about making choices that let your home feel organized and functional. Furniture that doubles as storage, walls that carry some of the load, closets with actual systems, and a thoughtful rotation of seasonal items can make a noticeable difference. In the end, a well-organized space feels bigger, calmer, and easier to live in. And that might be the best use of your two bedrooms.

What Everyone’s Getting Wrong About the Rise in New Home Inventory

By Dusty Rhodes • September 2, 2025
You may have seen talk online that new home inventory is at its highest level since the crash. And if you lived through the crash back in 2008, seeing new construction is up again may feel a little scary. But here’s what you need to remember: a lot of what you see online is designed to get clicks. So, you may not be getting the full story. A closer look at the data and a little expert insight can change your perspective completely. Why This Isn’t Like 2008 While it’s true the number of new homes on the market hit its highest level since the crash, that’s not a reason to worry. That’s because new builds are just one piece of the puzzle. They don’t tell the full story of what’s happening today. To get the real picture of how much inventory we have and how it compares to the surplus we saw back then, you’ve got to look at both new homes and existing homes (homes that were lived in by a previous owner). When you combine those two numbers , it’s clear overall supply looks very different today than it did around the crash ( see graph below ):

Homebuilders Are Relying More on Buyer Incentives To Battle Sluggish Market

By Dusty Rhodes • August 25, 2025
omebuilder sentiment remained weak in August, with the use of incentives hitting a post-COVID high as builders struggled to lure reluctant buyers off the sidelines. In August, 66% of builders reported using sales incentives such as discounts or mortgage rate buydowns , up from 62% in July and the highest percentage in at least five years, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released Monday. The survey showed that 37% of builders reported cutting prices in August—little changed from 38% in July. The average price reduction was 5% this month, where it has held steady since November. Overall builder confidence in the market for newly built single-family homes was 32 in August, down one point from July. Anything below 50 reflects negative homebuilder sentiment about the market. “Affordability continues to be the top challenge for the housing market and buyers are waiting for mortgage rates to drop to move forward,” said NAHB Chairman Buddy Hughes . “Builders are also grappling with supply-side headwinds, including ongoing frustrations with regulatory policies connected to developing land and building homes.”