Millennials, Put the Home-Buying Process and New Home Keys in Your Hands Now!
These days, millennials are proving themselves as a force to be reckoned with. Just take a look at the way 20-somethings and 30-somethings are impacting the workforce, the upcoming presidential election and yes, the real estate market! In the past, it may have been somewhat unheard of for a recent college graduate or young professional to purchase their first home before settling down or getting married. However, current real estate market conditions may actually make it more favorable for a millennial to choose buying a home over renting one. If you’re a millennial in that boat, you’ve probably been advised that buying a home is one of the largest purchases you’ll ever make and that you need to proceed with extreme caution. While that is valid advice, we know that many millennials have a knack for forging their own paths, so you may feel ready to dive into the home-buying process right away. Come on, millennials, we know that you’re bold, savvy and motivated! So, if those characteristics are coaxing you toward your first home purchase, let us offer you a few tips that may make your first home-buying process a smooth one. Put Finances First Millennials are often known for their positive, go-getter attitudes; unfortunately, much of the millennial generation also is mired with student loan debt and little savings. While those two characteristics don’t exactly mesh, they actually can work together when it comes to buying a home. There are lenders who offer mortgage options that allow buyers to put down as little as 3-5% of their home’s purchase price. Of course, that doesn’t mean you should just run out and apply for a loan without evaluating your current financial situation. If you’re not already familiar with how much money you’re bringing in and paying out on a regular basis and you think you’re ready to buy a home, you need to get in the financial know – in a hurry! Look at everything from your projected down payment, mortgage payments, property taxes, homeowners insurance, possible private mortgage insurance or PMI, utility fees and closing costs to your current debts, including student loans, car loans and credit card payments before you decide that you’re ready to take that home-buying leap. Find Short-and-Long Term Balance Because many millennials are deciding that they’re ready to purchase a home before they marry or have children, it is a good idea for them to consider not only their current needs and wants in a home, but also those that they may desire in the not-so-distant future. Right now, a townhome that’s just blocks away from a bustling nightlife may sound amazing, but consider if that will be suitable for your lifestyle in five or so years. You may want to browse some homes in both urban and not-so-urban areas before ruling anything out. Older you may thank current you in the long run! Even when you think you’ve found the home of your dreams that will suit your changing lifestyle needs, it is important to evaluate comparable homes to make sure the purchase is right for you. It is also a good idea to review similar area homes that have recently sold or that are currently on the market. Whether you intend to sell at a later date or not, you want to make sure that your new home purchase will appreciate while you’re living there. Accept Some Advice As a first-time home buyer, it is absolutely OK to accept (and even ask for) some advice on the home-buying process! No, your parents’ real estate experiences may not be the same as yours – they probably didn’t have tools like online listings, social media or possibly even mobile phones to assist them – but, having gone through the home-buying process before, they may be able to offer valuable insight on your decision. To get reliable help from someone who’s savvy with all of the latest real estate tools, find a professional real estate agent that you’re compatible with. An experienced agent will be well-versed in market conditions; they’ll be able to help you find homes that meet your wants and needs; and, they’ll be able to guide you through the entire home-buying process – until those coveted new home keys are in your hands! If you’re a millennial who is ready to assert yourself through the home-buying purchase, do so confidently!
