The real estate market can sure be intimidating, but by no means does it have to be. Buying a home is a big step—especially for someone in their 20s. However, once you break it down and have an experience real estate agent by your side, the entire process becomes so much easier. Keep on reading to see all the tips we have for buying a home in your 20s!
The first thing you need to do before you begin to look for a home is to figure out where you want to live. As a first-time home buyer in your 20s, this point is especially important, since—unlike renting—it is pretty hard to just pack up and move whenever your heart desires. That being said, make sure that you plan on staying in the area for at least 5 years, but preferably more, before looking for homes.
Handling the Finances
Looking for the right home is important, but knowing that you will be able to afford it is priority. After the 2008 financial crisis, it is no surprise that many twenty-somethings are a little hesitant to enter the home-buying market, but there are ways to do so that will protect your investment in the future. First and foremost, make sure that your credit is the best it can be, and get pre-approved for a mortgage so you know exactly how much you can spend on a home. If your credit isn’t where you’d like it to be, open up a small-limit credit card and pay it off every month until you get it to where you want it to be.
In addition, take the initiative and start saving as aggressively as you can towards the down payment. In all seriousness, Millennials have the advantage in this task, since they are less likely to have a family of their own, thus making it easier for them to divert cash from other parts of their budget into their savings. The more money you have in the bank before signing, the lower your mortgage payment will be and the more equity you’ll own in your home.
Do Your Research
Know that Google is your friend in finding out everything about the home and the neighborhood that you are looking into. Use it as much as you can, and do your due diligence in researching into the place. While Google is a great tool, an experience real estate agent will truly be the expert in this manner, as they have some more insight into the localized aspect of the community, along with a plethora of advice that they can share with you. A better agent means the overall process is a whole lot easier, and a better real estate agency starts with American Dream Realty.
So, if you’re thinking about entering the market at a 20-year-old, don’t panic—we are here to guide you every step of the way. Stop on into our office today to see what we can do for you!