People used to think that millennials were going to be the generation that would never buy their homes. However, it appears that the opposite is happening.
While it is great that more of this generation is starting to buy homes, it’s a big decision to make and there are things that need to be considered.
If you’re a millennial and you’re looking for your first home, have a look at these top four tips to help your dream come true:
Pay Off Debts And Student Loans
The most difficult challenge facing most millennial homebuyers is student loans and existing debt. Ideally, to buy a home you need to be debt-free, this is because it’s likely the biggest purchase you will ever make. The three payments that delayed millennials from saving for a deposit were student loans, down payments for cars, and credit card debts.
Save For Your Down Payment
Most people won’t pay cash for their first home. In fact, the majority of millennials will buy a home with a mortgage. This makes it important to have a decent down payment to help lower your interest rate and also enable you to pay off your mortgage faster. Around ten to twenty percent a great down payment to have. You will find here, some of the houses available on the current market so you can get an idea of the down payment you may need.
If you’ve already saved for you down payment and paid off your student loan, great work! The next step is for you to get onto that property ladder. In the last few years, the housing market has been extremely short of sellers, which has led to prices increasing and caused more competition between buyers. You will find that Gen Xers are normal buyers of more established homes instead of a starter home, so unfortunately your competition is the other millennials out there.
You can expect competition from both millennials and also the babyboomers who are downsizing, and these tend to have a much higher budget. So, you need to stand out. Firstly get preapproves for a home loan so you can act quickly, be decisive and say yes if you know you want it, make sure you get personal with the seller, a handwritten letter about why you love their home could work a treat.
Gain Experience With The Buying Process
One of the best things you can do when you are a first-time buyer is familiarizing yourself with the complete buying process. It’s important as millennials, to speak to experts and gain the knowledge you need to know what you are expecting. Using an expert in the field like an agent will be able to guide you through the buying process and get you to make a smart first home purchase.
Remember that buying your first home can be challenging and nerve-racking, however, it is also a life-changing, rewarding and exciting time.
Want more tips. Check out this spot on video by TheStreet with the Property Brothers.