The millennial generation is educated, tech-savvy, typically know what they want, and many young people in their twenties today want to buy a home.
Check out the tips below on how to buy your first home:
1. Make the Decision to Commit
Because buying a home is probably the most significant purchase a person will make in their lifetime, it is essential to know that you are ready to make that kind of a commitment. Millennials have been known to move around a lot, so it is necessary to understand that to recover the cost of purchase, most buyers remain in their home for at least 3 to 5 years before selling.
When you are a homeowner, be prepared to get your hands dirty to maintain it, both inside and outside. Be ready to replace smoke alarm batteries, air filters, keep the landscaping in top shape and a whole lot more.
2. Understand Your Finances
When you decide to buy a home, a lender will take your entire financial situation into consideration. Your finances include your current salary, your spending habits, bills and any large monetary gifts you may have received. It is vital for you to have all the facts before the bank investigates your status and to know how much money you will be able to allocate to a mortgage payment.
Remember, when you own a home, the fees do not stop at your monthly mortgage payment. You will be responsible for insurance, property taxes and the cost of routine and unexpected maintenance on your home.
3. Your Credit Score and Savings
In your twenties, you have probably established some form of credit which is hopefully good. When it comes to getting approval from a lender for a mortgage, they will take a very close look at your credit score. They will offer you a better interest rate the better your credit score is.
You will probably also have to dig into your savings when you buy a home because you will need cash for your down payment and closing costs.
4. Get Pre-approved by a Lender
Buying a home is a financial process. To do the best you can for yourself, look at many different lending institutions before you decide who you would like to use Every lender, just like every buyer is different. You will find that some are more lenient than others and some may offer lower rates than others. Consider all your options before making a final decision.
5. Work with an Agent You Trust
A professional real estate agent will have the necessary expertise to guide a first-time buyer to purchase the perfect home. A trained realtor will help you to understand your needs and wants and figure out your long-term goals for your new home. From there, the realtor will search for homes, show you homes, negotiate for you and take you through the entire process until you have the keys to your new house in your hands.
Are you looking for a realtor to help you buy your first home? Look no further. Call 604 218 9000