How To Buy A Home In Your Twenties

Posted: May 24 2018 News

You’ve got to give it to Millennials; they’re a passionate, technology driven bunch who typically learn by exploring. And what better way to explore than to come out of the basement and start looking for your first home.

Now, there are a multitude of apps out there for just about everything, but swiping your finger to the right isn’t going to land you the right home – though it will probably help you land a date with that cute waitress you've been chatting up on Tinder.

Instead, try these five go-to tips on how to buy a home in your twenties:

1. Decide you’re ready to commit

Don't worry, we're not talking about marriage here...

Buying a home may be the largest purchase you’ll ever make in your life, so make sure that you're ready for this kind of commitment. Considered as our generations "nomads", Millennials love travelling from place to place with no permanent abode – so, it’s important to note that most home buyers plan to settle in their homes for more than four years just so they can recoup the costs of their purchase.

2. Get your finances in check

When you feel like you're ready to buy a home, consider every part of your financial position and speak with a lender. Since a bank is going to get all up in your spending business, you should do the same. Find out how much money you’ve got going in and going out and how much you’ll be able to devote to a monthly mortgage payment. Also consider the fact that homeownership fees don’t end with the monthly mortgage payment. Be prepared for insurance, property taxes and any money it costs to cover unexpected home repairs and other maintenance woes.

3. Find a lender and get preapproved

Before you start putting money down for your first home, you'll want to ensure that you qualify for a mortgage so you have the peace of mind knowing that you're one step closer to owning that bachelor pad you've been eyeing.

Being pre-approved for a mortgage provides you with the confidence and security of negotiating a house price that falls comfortably with what you can afford.  Having your mortgage finances in place indicates that you can be taken seriously as a buyer. Head to your local bank and sit down with a mortgage specialist to discuss your current and future financial strategy as they will be able to tell you a recommended price range that will fall within your budget.

4. Consider credit and savings

You’ve probably established some type of credit – and, hopefully you have a decent credit score. Lenders will closely consider your credit score when it comes to mortgage approval – the better your credit score, the better interest rate you’ll be offered.

In addition to your credit, probe deeper into your savings. When buying a home for the first time, you’ll need to have money in-hand to cover up-front and closing costs like down payment and utility service charges.

5. Working with a real-estate agent

Ah yes, the ever so-important entity in the home-buying puzzle. This is one area where we would not advise following a do-it-yourself mindset. Three general tips when dealing with real estate agents:

•Find someone who you can be comfortable with
•Make sure you understand what you are buying
•Get all of the real estate agent's promises in writing

Now, if all else fails... You can still pick up that smartphone, crank up the chivalric charm, and swipe right to that waitress you've been eyeing on Tinder. ;)

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