Posted on Monday, May 14, 2018
We must give it to the millennial generation; they are educated, tech-savy and typically know what they want. In a stronger financial position, more millennials are starting families. Lately, we’ve been finding that many twenty-somethings in this group have decided that what they want is to buy their first home.
Now, there are apps galore on just about everything out there, but swiping right isn’t going to get you into your first home. Instead, try these five time-tested tips on how to buy a home in your twenties:
I'm sure you've heard this many time but buying a home may be the largest purchase of your life. You've got to know you're ready for that kind of commitment. Millennials have been termed as a nomadic bunch- so, it's important to keep in mind that most home owners spend 3 to 5 years in their first home. Buying a home also means you're ready to really get your hands dirty. To maintain your home, you'll need to be prepared to do handy work such as replacing smoke alarm batteries, maintaining your landscaping and even changing air filters. If you can commit to these terms, read on!
When it comes to buying a home, you will need to consider every part of your financial picture. From your current salary to your bills and spending habits. You need to find out how much money you've got coming in and going out and how much you'll be able to devote to a monthly mortgage payment. You'll also need to think about how homeownership doesn't end with just a monthly mortgage payment. You'll be responsible for insurance, property taxes and any money it costs to cover routine maintenance or unexpected home repairs.
You may have already had your first brush with credit when you were in college but by now you've probably established some types of credit- and hopefully it's at least decent. When going through the mortgage approval process your credit score will be closely considered. When you're buying a home, you'll need to have money in–hand for up-front cover fees like your down payment and closing costs.
We've already established that lenders will consider all your financials. Here is where you get to have a say in this part of the process. Seek out several lending institutions before you settle on the one you'd like to use. Some may be more lenient when it comes to credit history. Some credit unions or banks you've used for years may offer lower rates than other lenders. The federal government also offers FHA and VA loan options that may be good for first-time buyers.
This is the one area where we would not advise following the DIY mentality. Professional real estate agents have the training and know-how to lead any first-time home buyer to a home that’s right for them. Your trusted agent will help you make up your "needs and wants" list when it comes to a home; and, they'll search for homes, show you homes, negotiate and walk you through the entire offer and closing process.