According to a recent survey, millennials are educated, tech-savvy, typically know what they want and willing to purchase product or service to support a cause they believe in even if it means paying a bit more. That's probably the reason why there's an increase in people from the twenties to early thirties wanting to buy a home so they can move out from their parent's basement.
The largest generation in history feels that purchasing a home is a smart financial decision that's why millennials entering the housing market need extra support.
This guide should help first-time homebuyer millennials.
1. Deciding if you're ready for the commitment
Buying a home may be the largest purchase you’ll make in your entire life that's why you need to ask yourself first if you're ready for that type of commitment. Buying a home also means you need to work hard not only financially but also handy work like small house repairs and maintenance.
2. Figure out what you can afford
Keep in mind that monthly payments include more than just the mortgage; they also carry interest, property taxes and insurance on the home. You may want to lists down payment, buyer’s closing costs, moving costs, move-in costs, and maintenance. Remember to determine first how these will affect your budget.
3. Consider Credit and Savings
You probably established some type of credit score by now and hopefully, it's decent. Lenders will likely to consider your credit score when it comes to mortgage approval. Apart from credit, check on your savings. When buying a home you need be ready for upfront payments like down payments and closing costs.
4. Look for a Lender and Get Pre Approved
Home buying is definitely a financial process. We mentioned that lenders will consider your bank statements, salary, bills, and even spending habits but you will always have an option to look for several lending companies. Some may be more lenient when it comes to credit history. The banks that you’ve used for years may offer lower rates than other lenders.
5. Look for an Agent You Can Trust
Professional real estate agents have the training, experience, and know-how to lead any first-time home buyer to a home that’s right for them. Your trusted real estate agent should help you decide on your needs and wants when it comes to a home. Not only that, they should walk you through the entire offer and closing process and help you in consider your long-term goals for your new home.
Buying a home is a big purchase not only for millennials but for anyone. It should be taken very seriously and planned for well in advance. Contact a trusted real estate agent, who will be happy to help you through the entire home-buying process today!