How to buy a home in your 20's
Buying a home can be one of the most stressful and important decisions you will ever have to make in your life time. Let alone doing it in your 20's. In this blog we will talk about a few key points that will make the process run more smoothly.
Know where you would like to live. Having the general knowledge of where you would like to live is the starting point to all home buying decisions. Whether you would like to live near schools or whether you would like to live on a oceanfront property near downtown.. these are all important factors in the home buying scenario.
Credit is the new black. The majority of millennials either have one of two things: Little credit or no credit. With either of these things comes the difficulty in getting approved for a mortgage. If you fall under this category I suggest opening up a credit card with a small limit, keeping the debt under 30%, and remembering to pay it off each month. This will in return, help build your credit.
SAVE THAT MONEY, HONEY. Budgeting is going to play a huge part into the home buying process. You want that house with the picket fence and country style doors? My advice? Set small goals for yourself, put doable portions of each paycheck aside, and watch that money grow.
Do your homework. For us agents, we call this due diligence. Keep a close eye on the news articles and press releases of the area you're looking to invest in. Google is also a wonderful resource of information. Drive by your potential home during different times of the day/night to gauge the difference in speed.
Don't buy a home you know you can't afford. This in my opinion, is the most important step in the process. 20's are sometimes met with low salary jobs, student loans, and other variables that can directly affect your affordability. When purchasing a home make sure you can comfortably afford what all that entails. Think of your mortgage, home insurance, car payments, electricity, and other personal bills you deal with a monthly, bi-monthly basis. https://www.nerdwallet.com/mortgages/how-much-house-can-i-afford <---- Follow this link to be taken to a virtual calculator that will help you figure out a mortgage you can afford.