- Face Your Finances: First things first, get your finances in order. It is not uncommon for millennials to face a wall of student debt costing over/under $20,000, so it is important to make sure you are making your payments on time and building good credit. It is also important to be saving and budgeting properly in order to prepare yourself for your down payment and the costs that come along with home ownership. Stable income and employment is also vital to the process as it will increase your likelihood of receiving a home loan from a financial institution.
- Don’t Assume You Can’t Afford It: Just because millennials face debt or may have little money saved does not mean it is impossible for them to purchase a home. In some markets, it is just as expensive to rent as it is to buy, so if possible, live with family and save up the rent money you would be paying to go towards a down payment on a home. When it comes to lenders today, there are many loan options available that require less than 20% down making home ownership more affordable. If you’d like to learn more about your loan options, contact a mortgage professional today.
- Don’t Go it Alone: With millennials being as tech savvy as they are and with so many listings being available online today, it is easy to assume you can go the process alone without hiring a real estate agent. If you are a first time home buyer though, it is important to talk with a professional who knows the ins and outs of the market and its red flags to ensure you have a genuine home buying experience.
- Seek Advice: Talk to people you trust including your parents. Remember that regardless how different times were when they bought, they’ve been through the experience and can add value to your home search. They know what it’s like to be a homeowner and likely have some wise advice for you about home buying and financing.
- Avoid Financial Tunnel Vision: Let this be a reminder that your goal of home ownership should not be the only thing on your radar. Even though buying your first home is a big responsibility that requires saving a great deal for, there are other things you should be saving for as well that you cannot ignore such as an emergency fund and your 401K. Although saving for retirement does not seem as glamorous or sound as important while you’re young, disregarding your chance to utilize your 401k match can cause a bleak financial future.