I feel lucky to be considered a part of the millennial generation – a very educated group of people who know exactly what they want and will do whatever it takes to get it. One example of the millennial mindset is seen with home ownership. I’ve noticed that many 20-somethings have decided that they want to own rather than rent (and yes, this is a good idea) – and they want to do it sooner rather than later.
SO… if you’re ready, here are my tips on how to make it happen:
1. Ready for commitment?
Have commitment issues? No biggy, most millennials do. Although buying a home may be the largest purchase you’ll make in your entire life, most home buyers only stay in their homes for at least 3-5 years. In that time, you will recoup the costs of your purchase and be ready to redecorate. It’s really not THAT much of a commitment.
If you can handle home maintenance (landscaping, air filters, smoke alarms, etc.) then you can do it. Now let’s move on…
2. Let's figure out your finances.
Now that you’re committed (wink), the next step is to understand your finances. When it’s time to buy a home, a lender will consider every part of your financial picture. They will basically know everything about you so you should too. Find out how much money you have coming in and going out and how much you’ll be able to devote to a monthly mortgage payment.
When you’re looking at your finances and budget be sure to consider the fact that homeowners are responsible for a number of things: insurance, property taxes and any money it costs to cover routine maintenance or unexpected home repairs.
Your lender and I will can walk you through this, and chances are you CAN make it happen.
3. Credit and saving actually DO matter.
If you’re considering purchasing a home, you’ve probably established some type of credit – and, hopefully it’s at least decent. Lenders will closely consider your credit score when it comes to mortgage approval. Remember – the better your credit card score, the better interest rate you’ll be offered.
In addition to your credit, delve deeper into your savings. When you’re buying a home, you’ll need to have money in-hand, up-front to cover fees like your down payment and closing costs (loan origination fees, appraisal fees, title searches, title insurance, etc.).
Once you choose the house ~*~of your dreams~*~ this $ amount will all be broken down for you so there will be no surprises.
4. Get pre-approved!
We already know that lenders will consider your bank statements, bills, salary, spending habits, credit and more – but, here’s where you get to have a say. Seek out several lending institutions and find the one you’d like to use. I also have a few preferred lenders that may work for you!
Just like every buyer is different, so is every lender. 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.
Consider all options before choosing a mortgage lender!
5. Work with ME
It’s so important that you choose an agent you trust – and if you’re reading this you should already know you can trust me. I’ve been trained and know how to lead any buyer to a home that’s right for them. I will help you make up your “needs and wants” list when it comes to a home; I’ll help you consider your long-term goals for your new home; and, I’ll search for homes, show you homes, negotiate and walk you through the entire offer and closing process.
I became a homeowner at age 25 so, we are on the same page. Yes, buying a home is stressful – but it’s also FUN and EXCITING! You’re getting ready for the next chapter of your life to begin! Let me do the hard work for you.
If any of these steps terrify you or if you have ANY questions – let me know! I’m here for you and cannot wait until I get the call (or probably text) that you’re ready.