Millennial Looking to Purchase Your First Home? Start Here

Is it time to begin your house hunting journey? As millennials begin to look into purchasing homes, the real estate market has prepared itself by adapting to a millennial mindset. We see renovations geared toward green living, functional spaces and technologically ‘smart’!

Let’s help set you up to get into that home sooner than later. There are some things you can do to prepare for the process, and make yourself mortgage and homeowner ready!

1. Pay Down Any Debt You Carry

Most millennials are paying off student loan debt, so don’t feel like you’re alone. In fact, most millennials graduate college with about $30,000 in student loan debt. The important thing is that you stay current and pay down your debt.

You also want to pay down your credit card debt, and try keeping balances under 10% of allowable credit.

Not only is a house probably the biggest purchase you’ll ever make, but it also requires mortgage agencies and lenders to see you as loan-worthy.

Your credit score and financial status have a huge impact on what banks will be willing to loan you. Starting the process now can help save you from stress and headaches later.

2. Save for That Downpayment and Closing Costs

If you’re a first-time home buyer, you may not need a down payment as substantial as you may imagine. There are many factors that go into the type of loan that will best suit your needs, and that affect your interest rate and monthly payment. A good lender will make sure your payment fits your lifestyle and budget, not just max out what you can afford on paper! There are loans available from 0-20% down, so you’ll want an experienced lender to help navigate all of those options.

3. There’s an App for That

Keep your eye on the housing market, so you know what your money can buy you. Today’s technology allows you to study the market on your time, and get a sense of what’s available in your price range.

Look at different neighborhoods that you like. How do the prices differ?
Check the school zones. If you’re planning on starting a family, you may want to get into the area early.
Download an app like Nextdoor and preview what your neighbors say about the area.
Begin virtually touring homes to determine your taste and needs.

4. Prepare to Buy by Getting Pre-Approved for a Loan

Shopping loans and going through the pre-approval process can help narrow your search, and give you an edge on the purchasing competition. If you find your ideal home, in this market you’ll need to act fast. Having a full pre-approval (not just pre-qualified) letter, is a must in today’s market.

5. Own What Makes You Unique

Millennials are inventive, creative, and passionate. You can use this to your advantage in the home buying process.

You have probably heard you can’t get everything you want in a home. You may have to compromise. Well, one thing I truly love about millennials, is that you think outside the box. You can envision the potential of a place, and don’t mind diving into a project. If you’re a visionary, this can really open the market up to you in a unique way.

You can also share your passion and love of a house through a heartfelt letter to the seller. People often want to know their house will be in good hands, and a letter does just this with a personal touch!

Your Home is Just Around the Corner…

I would love to help you find the right home for you! Let’s find that perfect craftsman with a porch for your hammock, or the cottage tucked into a quaint neighborhood, right around the way from your favorite farmer’s market. Call, text, or email today, and let’s start with a stress-free conversation. Breaking home-ownership down into simple steps, makes the process so much more enjoyable for you. Let’s get started today!

 
 
Image credit: iStock / Getty Images Plus/BernardaSv