6 Tips for Young Homebuyers to Make Their Dreams A Reality
Posted by Eric Skates on
Purchasing a home can be scary no matter how old you are. It can be especially scary, however, when you're a 20-something single person or newlywed trying to wade the waters of homeownership while just getting your adult legs under you.
The good news is that, while it's scary, it is certainly achievable. You don't have to wait until your late thirties or early forties to purchase a home. If your a young person who wants to make their dreams of owning their own home a reality sooner rather than later, these six tips will help.
1: Start Saving Early
Most teenagers have a part-time job, whether babysitting or mowing lawns or working at the local grocery store. If those teens only knew how many would grow up to be adults that wished they had saved something from this time before bills. If you have the luxury of thinking that far ahead, start saving in your teens. Even saving at 19 or 20 can give you a huge head start.
2: Consider A Co-Signer
If your parents, grandparents, or another relative will co-sign a home for you and have the good credit to do so, take that option! Your chances of getting a loan approved with an older co-signer with established credit is significantly higher than trying by yourself.
3: Avoid Other Large Debts
Sometimes it is impossible to avoid large debts, but do your best to avoid them if you want to purchase a home while you're still young. Even if student loans are a must, don't weigh yourself down with car payments or anything else that will cut back on your free money. You can always buy a brand new car down the road, when your mortgage is entirely (or almost) paid off and you're making better money.
If you already have some large debts like student loans and car payments, try paying them off now. Or, get them as low as possible. This will both help your credit and free up some of your monthly earnings.
4: Live Simply
Don't just live within your means, live below them. This will give you the largest cash savings for a down payment. If it's an option, consider staying with your parents for as long as possible. Throwing them $100 or $200 a month won't just help them out, but it's a lot cheaper than the $800+ you'd be paying in rent.
Also avoid big spending. Just because you don't have a lot of bills doesn't mean you should blow your money. Save it and allow it to grow interest until you have enough for a substantial home down payment.
5: Work With A Realtor From the Start
Starting with your preapproval, you'll want to work with a licensed realtor. They can help you to traverse the overwhelming process of getting a home. They have access to information you don't. They can both find you a house and help you get a mortgage. You'll find your realtor to be an invaluable team member who can keep things as free of stress as humanly possible.
6: Do Your Own Research
Even though you should be working with a realtor, it doesn't meant you shouldn't know as much as possible yourself. Research on your own every step of the journey. Find out what the mortgage rates are, and what the real estate market looks like in your desired community. Know the laws, building codes, and different types of properties available to you. Research the varying loans you might try to apply for, and find out if you qualify for any home grants. Knowledge is power.
The six tips above will help young homebuyers make their dreams a reality. Just practice patience and be smart, and you'll own your home sooner rather than later. When you're ready to start talking about homeownership with an expert, contact us at 877-255-3554 (toll-free) or click this link and connect with us online today.