For most millennials, becoming a “real” adult means having a stable job and owning your own home. Most millennials also feel that owning a home is out of reach, but it’s not! Buying a home in your twenties isn’t as complicated as one might think. So long as you have a stable job, some money saved, and good credit, there’s not much more you really need.
A good rule of thumb when thinking about buying a home is considering your 3-5 year plan. Do you have a stable job? Do you plan on staying in your current city? What area of your city do you want to live in long-term? Millennials, in general, are known to be nomadic, so having commitment is an extremely important piece when deciding to buy a home. Go into it knowing you will need to live in your home 3-5 years in order to recoup your costs.
In addition to the financial piece, there’s the home improvement piece. Homes take a lot of commitment and maintenance. If something breaks, fixing if falls back on you – from broken stoves, to changing air filters, to landscaping.
STUDY YOUR FINANCES
Buying a home takes not only time, but money and understanding every bit of your financial state. Create a spreadsheet so that you can see where your money is going each month. Keep track of how much you spend a month on necessities like food and gas, to necessaries like clothing and movie tickets. When a bank looks into your financial state when deciding whether to lend you a loan or not, they look at everything from your spending habits, to your debt, to lump sum monies you’ve received.
It’s also a good idea to start building your credit early so that when you’re ready to buy a home, your credit is in a good range. The better your credit score, the better your interest rate.
GET PREAPPROVED FOR A LOAN
Do your research on lenders before going to get preapproved for your loan. Lenders consider every aspect of your financial state, so it’s important to look into what one is more lenient towards versus the other. Remember, some will have lower interest rates than others – do your homework upfront!
FIND AN AGENT YOU TRUST
Once you’ve decided your 3-5 year plan includes living in a specific area of your city, you’ve studied your finances, and you’ve been preapproved, it’s time to find a real estate agent you trust. Your real estate agent will become like a close friend to you during the home-buying process; they will be there with you every step of the way. Let them know your needs and wants in a home up front so they can find homes that meet your standards. They will be able to answer all questions you may have about first-time home ownership. Working with an agent you trust will ensure you make a sound decision, as buying a home is one of the biggest decisions you will make in your life. Make sure you pick an agent who you can, essentially, put your life in their hands.
If you’re a twenty-something millennial looking to buy a home, our Armstrong Real Estate agents want to help you. Looking for a first-time home in Nashville? Click HERE to view starter homes in Nashville! Give us a call @ 615.807.0579 for questions!