Is Homeownership Really Out of Reach for All First-Time Buyers… or Does It Just Feel That Way?

If you’ve been wishing you could buy your first house, there’s a good chance the headlines are making you feel like it’s probably close to impossible.

And to be fair, it’s not easy for a lot of first-time buyers who don’t have the advantage of equity from a previous home. Prices have gone up. Rates aren’t what they used to be. And rent hasn’t exactly been giving anyone a break either, which can make saving for a down payment feel like an uphill battle.

It’s also pretty rare to hear anything that pushes back on that perspective. The overwhelming message is that housing is unaffordable, that first-time buyers are getting squeezed out, and that something needs to change to make it more accessible.

So even if you’re doing pretty well financially, it’s not surprising if it still feels like buying a home is out of reach. It’s easy to assume you’re not in a position to buy simply because it feels like no one is.

But it might not be a bad idea to test that assumption.

Why It Might Feel Like You’re Further Behind Than You Are

A recent article on Realtor.com touched on something called money dysmorphia.

It’s a pretty simple idea. It’s when your perception of your financial situation doesn’t quite line up with reality. In other words, you might be doing better than you think, but it doesn’t feel that way.

And that feeling can be influenced by a lot of things:

• What you see your peers posting on social media.
• What you hear from friends or coworkers.
• Or perhaps the constant stream of headlines talking about how expensive homes are.

It can create this sense that everyone else is either way ahead of you… or that nobody can afford anything at all.

On one hand, it can make you feel like you’re falling behind compared to what you see others doing. On the other hand, it can reinforce the idea that buying a home just isn’t realistic right now… even if your situation might suggest otherwise.

Most people probably aren’t even aware that’s happening to them, so they don’t really question it. But now that you are, here are a few questions you might want to start asking yourself.

• Is it possible I’m actually in a position to buy a home?
  It might sound like a simple question, but it’s one a lot of people never seriously ask. If you’ve already assumed the answer is no, you may be skipping over the possibility that things aren’t as out of reach as they feel.
• What’s the worst that could happen if I try to find out?
  You’re not committing to anything by exploring your options. At worst, you confirm you’re not quite ready yet. At best, you realize you’re closer than you thought.
• What would I need to do to get a clear answer?
  This usually isn’t as complicated as it sounds. A quick look at your finances and a conversation with a lender can give you a much more accurate picture than guesswork or headlines.
• What if the answer is yes?
  That doesn’t mean you have to rush out and buy something tomorrow. It just means you have options—and you can start thinking about timing, strategy, and what makes sense for you.
• What if the answer is no?
  Even if you aren’t in a position to buy a house, at least you’ll get a feel for what you need to do to get yourself in a position to do so. Whether it’s saving a bit more, paying down debt, or improving credit, you can move forward with a plan instead of an assumption.

Once you’ve worked through those questions, there’s really only one way to find out where you stand… and that’s to speak with a mortgage professional.

Ideally, you’ll want someone who works with first-time buyers and is willing to walk you through things without making it feel overwhelming. They can guide you through the pre-approval process, which will give you a clear picture of whether you’re currently in a position to get a mortgage—or what you need to do to get there.

A great way to find the right mortgage professional is to ask a local real estate agent for a recommendation. And while you’re at it, starting a relationship with an agent isn’t a bad idea either. Whether you’re ready now or further down the road, they can be extremely helpful in getting you from where you are today to where you want to be.

The Takeaway:

If you’ve been feeling like buying your first home is out of reach, you’re not alone. Between rising prices, higher rates, and constant headlines about affordability, it’s easy to assume it’s just not possible right now.

But sometimes that feeling has just as much to do with perception as it does with reality. Due to something called money dysmorphia, it’s easy to underestimate where you stand financially, or assume you can’t afford something without ever really looking into it.

Having a quick conversation with a mortgage professional can give you a much clearer picture. You may find you’re closer than you think… or at least know exactly what steps to take to get there.