Millennials are known to be educated, tech-savvy, and empowered. Most of them also want to live independently. Part of being independent is considering owning a house. Buying your first house, especially in your 20’s, is a big responsibility.
Being in the generation that grows up constantly connected to the internet, surely you will check everything online. With just a couple of taps, you buy something on the spot and regret on it later most of the time. In this blog, we will help you with these five time-tested tips on how to buy a home in your twenties.
- Be ready to commit
This might be the number one piece of advice anyone can give. Buying a house may be the largest purchase of your life. Thus, it needs to be well thought out. You have to be disciplined, patient and ready – ready to get your hands dirty literally and figuratively. Owning a house also involves replacing those defective light bulbs on your own or cleaning your house regularly when you’re on a tight budget.
- Figure out your finances
Deciding on buying a house doesn’t happen overnight. You have to think things through especially with how it will affect your finances. Know how much you have to spend more for your house on top of your other monthly expenses such as food, utilities, subscriptions, etc. You may also explore the different financing offers which can help you through your expenses.
- Consider credit or pay by savings
If you own a credit card right now, let’s hope you maintain a healthy credit record; because with that, lenders can easily consider and approve your application. You may also delve deeper into your savings. In buying a home, you’ll need to have money in hand to pay the down payment which is usually the closest step to finally owning a house.
- Find a lender and get approved
Loan preapproval is to prove a buyer’s credibility to the seller. Real estate experts tell first-time home buyers that it’s critical to apply for a loan before shopping for a home because a loan preapproval is an essential first step. And did you know that it’s far better to be preapproved for a loan than to be just prequalified? It will actually give you confidence and save you time by looking at the right homes.
- Work with an agent you can trust.
Others might not consider this last tip because of the fear of being scammed or fooled and not getting the best offer. But if you have a trusted real estate agent, you’ll have to let go of that fear now. Your agent will help you make up your “needs and wants” list when it comes to choosing a home. They’ll help you identify your long-term goals for your new home. They’ll search and show you homes that are fit for you. They’ll negotiate and walk you through the entire offer and closing process.
There are lots of tips on how to prepare yourself when buying your first home. These 5 tips will surely help you through this big decision.