A Millennial’s Guide to Buying the First Home
For a young adult or millennial like you, one of the most coveted goals in life is to own your own home. It’s basically an integral part of the American dream. Unfortunately though, buying a home isn’t as easy as you hope it would be. As a matter of fact, only a handful of young adults in this country are capable of becoming a homeowner. Many young adults, perhaps even including you, are still stuck on renting apartments or living with your parents.
Considering that you’re already ripe to become a homeowner, the time is now for you to finally make that push. Here are some few tips to get you started.
1 – Make a habit of keeping all possible options open.
Unlike in the past several decades, it now has become quite challenging to buy a new home. The reason isn’t because homes for sale are very pricey; it’s just that it feels like the options are so limited. So, if you have saved enough money to buy a home or pay the down payment, it is recommended that you keep your options open the rest of the way since there have been so many cases in which homebuyers have this specific set of preferences in a type of home they wish to buy, only to get the harsh reality that it doesn’t exist.
2 – Double check your finances.
There is no point in dreaming to buy a home if you don’t consider yourself as financially stable. If you have a regular job or business that allows you to earn money to cover the mortgage, then stop dreaming and instead do something to get your finances in order. It is important that you show the bank or financing institution that you are capable of bearing the responsibility of paying your mortgage.
3 – Get a pre-approval.
As soon as you’ve successfully put your finances in order, it’s time you determine how much you can borrow. This is crucial because it gives you a clearer idea as to the types of homes you can afford. Searching through various mortgage websites online will help you find a lender and have a clearer picture of your chances of finally buying a home. But the most important part of this process is you getting a pre-approval for a loan. Simply put, there is no way anyone can buy a home without that pre-approval for a loan.
4 – Be practical.
At the end of the day, you shouldn’t forget that there’s a responsibility you need to perform once you buy a house of your dreams. Therefore, it always is a smart decision to be practical and choose a house that you can afford.