Millennials are dreaming high to be a homeowner. Owning a house is an exciting part of anyone’s life and can be considered as a milestone that owes a celebration. But many people prefer to follow the trend of renting a house first and then purchase a home at a later stage. Better late than never! They do everything possible to become homeowners. They are ready to travel a long distance and not hesitant to ask for the family’s support to make their dream come true.
Millennials are determined and they believe in quality rather than quantity. They are not targeting big houses like their parents’. They are happy with smaller homes because they economize on their budget as they lack savings. Reasons like student loan repayment, expensive living compared to their stagnant wages and ultimately no savings to make 20% down payment to own a home are some to name. Especially for millennials living in metro cities, home-owning becomes highly challenging. Millennials are grateful to their family for the huge support that they provide to own a home in the suburban areas for their affordability.
If you belong to one of the millennial group, we have some great tips for you to make your dream come true:
Clear all the Existing Debts
The way forward for your dream home will be to quickly pay off all the existing debts like credit card debts, personal loans, student loans, etc. This will make more money available for a down payment, mortgage loan, and savings.
Buy a Home that Suits your Lifestyle
Don’t rush to buy a home. Home buying is always an exhausting and lengthy process. Rushing can lead to the wrong choice and bring a financial burden on you and create lots of problems in the future. Ultimately to resolve this you’ll decide to sell it up with no profit. Hence it’s ideal to purchase a house that meets all your indoor and outdoor requirements. Give some thought on the distance you need to travel from home to the workplace. Similarly consider the outdoor space if you have kids and pets, and schools nearby for your kid’s education, the maintenance cost incurred apart from the monthly loan payment. Take time to research and make a wise decision to choose the right one that fits your lifestyle. You are buying a home to peacefully live in it, not to get stressed out.
Evaluate the Property in the Buyer’s Market
The buyer’s market makes several houses available that can meet up with different individual’s requirements. The great advantage is that the buyer can search area wise and know how the prices vary. The sellers face more competition and tend to reduce the prices if the house has been available for a long time.
Analyze the Current Status of the Property
Make a personal visit to the house you have decided to buy and check if everything is in good condition. Corey Bowden from House Buyers Cash explains that often times, people buying their first house will choose an inexpensive home. It doesn’t make any sense of saving a few thousands by buying a house that requires lots of improvement. Ultimately you end up shedding more money than you saved and spend an enormous amount of time in renovating your new home.
Be it for the Future
When you are single, you will enjoy the nightlife in the crowded city, as you settle down with family and kids you may look forward to a peaceful and calm life. Also buying a very small house will be a wrong decision when you plan for kids. Your house should be spacious enough to accommodate your children in the future. Hence it is better to have long-term plans when you invest in a home purchase. if you are planning in California, please check clearlake real estate for better properties with market prices.
Check for your Affordability
Before starting your home hunt, get your financial status analyzed for the affordability. This will help you not to go way beyond your budget. Keep all the home-related expenses like mortgage, insurance, maintenance, and other expenses no more than 30% of your monthly income. This will help you build savings for your future.
Make Savings for a Down Payment
Much before you start dreaming of your own home, start to make some savings for your future home. The more you save towards down payment the more affordable will be your mortgage loan. Because the real estate market demands a minimum of 20% down payment towards a purchase. At least you shall have a 10% savings before you step forward to buy a home.
Begin the search with a Preapproval letter for Loan
Getting a preapproved loan will take a couple of weeks. Hence do the necessary steps to get a pre-approval letter before starting the search. This way you can make an offer immediately to the house you decided to buy. Otherwise, by the time you complete the formalities for the loan, the house you chose to buy will be owned by someone else.
Let the Process Moving
Never make the seller feel uncertain about the purchase. This will draw the seller’s attention towards other buyers who are on the fast track than you. Stay in touch with the seller or agent to get the deal done as soon as possible.
Choose a Home with a good Exit plan of action
Generally one cannot stay forever in their first home. With changing demands in life, we have to move on to a new place. Keeping this in mind, do proper researches about the house and the location before you buy it. Whether you can rent out or sell the property easily? Is it big enough to start a family for a couple? What are the amenities present nearby? Is there a good school close by to this location? What will be the resale value? Can you make a profitable resale? How good are your neighbors, etc?
Use the above tips to streamline your home buying process if you are a first-time buyer and find your dream home that fits into your budget.
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