Are you a millennial planning to make your first foray into the world of homebuying? Congratulations! Owning a home is an exciting milestone and one that can set up great financial possibilities for the future. The journey isn’t always easy, but that’s where this ultimate guide comes in. We’re here to provide five valuable tips from experienced real estate professionals who know what it takes to buy a house as a young professional today. Read on for our top advice and get ready to hit the market with confidence!
#1 Start Saving!
One of the biggest steps in preparing for homeownership is saving up for it. This means that you’ll need to have enough money saved up for the down payment and closing costs associated with buying a house. It’s also important to save up a few months of mortgage payments in case of any unforeseen circumstances. Make sure you create a budget and stick to it so that you can start saving as soon as possible!
As a first-time homebuyer, you may be surprised to know that a 20% down payment is not necessarily required. However, it’s important to have a down payment available since many lenders look for potential buyers who are financially capable and ready to commit. The amount you’ll need ultimately depends on your individual circumstances, including the type of loan you obtain and the requirements from your lender. To ease first-time homebuyer anxieties, there are several incentives and options available that can assist with securing the necessary funds. Review these carefully before making any financial commitments to ensure you’re taking advantage of all available benefits.
#2 Find a Professional, Reliable Lender
Once you have your savings account ready, it’s time to find an appropriate lender. Take some time to research different lenders and compare their rates and terms. Once you feel comfortable with one, make sure they are reliable by checking out their reviews online or asking trusted friends or family members who had similar experiences. This way, you can ensure that your lender will provide great customer service throughout the entire home buying process. Need a lender recommendation? Truen Group works with one of the best in Minnesota and Western Wisconsin. Reach out, we’d love to pass his name to you.
#3 Build Up Good Credit
A credit score is one of the most important numbers to have since it reflects financial responsibility and creditworthiness. A good credit score can get you access to better credit terms and lower interest rates. It also plays an important role when you’re looking for a new job or applying for a loan or mortgage. There are several steps to take in order to build and maintain your credit score, such as making sure to pay your bills on time, borrowing wisely, and putting some money away into savings every month. Additionally, keeping credit utilization low to around 30% will help boost your credit score. Although it may seem like an overwhelming process, establishing good credit habits over time will result in increased credit scores and more financial security.
#4 Get Pre-Approved
Getting pre-approved for a loan before beginning your home search is incredibly helpful because it helps narrow down what type of houses are within your price range. Having this information ahead of time helps streamline the whole process as well as give sellers more confidence in knowing that your offer is credible since you have already been approved by their lender. This ties back to tip #2, with the right lender, he or she will ensure you’ve turned in all the critical paperwork to get you pre-approved and on the right track to finding that dream home.
#5 Choose A Smart Location
Location matters more than ever when purchasing real estate and this is especially true if you are looking to buy property as an investment or even just somewhere comfortable to live in the years ahead. Depending on what city or town you want to settle down in, there are many factors such as taxes, crime rate, school district ratings etc., which can all play into how much value your property will hold over time as well as how desirable living there will be! Do some research ahead of time so that when it comes time to make an offer on a house, you know exactly where your money will be best spent!
With these 5 tips in mind, millennials can confidently embark on their journey towards homeownership without feeling overwhelmed or intimidated by the process. From saving up funds for down payments and closing costs, researching lenders, and building good credit scores – all these steps help build confidence when making such an important decision as purchasing real estate. Taking things slowly but surely makes all the difference between success and failure – so make sure each step taken is done deliberately with clear goals in mind! Truen Group Real Estate Team is located in historic downtown Stillwater. We love helping first-time home buyers’ dreams come true. If you are ready to begin your search, reach out today! DM us or text/call 651.867.3225. Hate the phone? You can schedule a buyer appointment directly here.