Lauren Niesz 26, a 26-year-old, found that the circumstances were difficult and she had to start working from home.

Niesz, a resident of southern New Jersey who lived in a townhouse, often worked from her closet to keep her boyfriend, a live-in boyfriend, away.

The couple also needed to take their 2-year-old dog, who was now a senior citizen, for walks in the nearby neighborhood.

Niesz was impressed by the online layout of her new home. She contacted her agent and made an offer for September. They closed last month on the newly built home in Howell New Jersey. It also included a yard for their dog.

Niesz, Comcast’s technical product manager for technical products, says that the down payment process was a significant part of what the couple did to save money during the pandemic.

Niesz explained that Niesz was able “to save so much money since we weren’t going anyplace or doing anything.”

More information from Invest in You
65% of women would buy a home without being married first
Rents are up 30% in some cities
Inflation eroded pay by 1.7% over the past year

Redfin conducted a survey to determine the most effective ways for first-time buyers to save on their down payments.

The rule of thumb for homebuyers is to set aside 20%. However, Nadia Evangelou (senior economist, director of forecasting, National Association of Realtors) found that most homeowners put down 7%.

That’s as millennials — the generation born between 1981 and 1996 — enter homebuying age while facing market conditions that make it even more difficult to buy their first home.

Home inventory for people who typically qualify as first-time homeowners — with incomes between $75,000 and $100,000 — is at record lows. Evangelou estimates that in 2021 there would have been one listing for each 65 households within the starter-home section. For every 24 households, there was one listing in 2019.

Evangelou explained that they see a drop in options. “They can’t afford the homes they want, so there are fewer houses available.”

There are still some circumstances that might tempt homebuyers to get on the housing market.

The Federal Reserve is considering raising the interest rate to lower inflation. This will make mortgages more expensive.

Redfin’s chief economist Daryl Fairweather stated that buying a house would remove the worry of not knowing how much you will be paying next year because rents have risen significantly.

Fairweather stated, “At the very least you can lock in your monthly mortgage payment when you purchase.”

It can sometimes be difficult to close a deal because first-time buyers are more likely than other homebuyers to offer multiple offers on homes. This includes bids from homeowners who have already purchased the property and cash buyers.

Thomas Scanlon is a Raymond James Financial Services financial advisor in Manchester, Connecticut. He said that this was exactly what he did with a first-time buyer of a home who was a 30-year old. A total of 16 bids were received by the prospective buyer for this home. The winner bid exceeded $30,000 and was all-cash.

Scanlon explained that, despite all the problems associated with buying your first home today’s market can be a great way to build personal wealth.

Scanlon explained that “Long term you obviously don’t wish to wake up after 10 years with a cigarbox of rent receipts.”

Experts believe it’s crucial that the first time homebuyer is fully informed and prepared. Scanlon describes this process as having “eyes wide open.”

Fairweather advised that it is important to research the current market and determine what properties are selling for. Fairweather also suggested researching how quick transactions take place.

Scanlon explained that taking steps to improve your credit and pay down debts will help you be more financially strong.

Be sure to line up everything you need — including preapproval for a mortgage — before you’re ready to make a bid.

Fairweather stated, “If you tour a house and like it, then you must make an offer immediately to get a price,”

It’s crucial to remember that winning offers are not the only thing you should be focusing on.

Scanlon explained that overbidding and not paying cash is a sign you’re borrowing money from the bank.

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SEE ALSO: How to make money with creative side hustles, from people who earn thousands on sites like Etsy and Twitch via Grow with Acorns+CNBC.

Disclosure: Comcast owns NBCUniversal and is parent company to CNBC.

Disclosure: Comcast Ventures and NBCUniversal are both investors Acorns.