There is a consensus that millennials are not buying houses because they are too expensive, they prefer to rent, and are more likely to live at home. While this may be the case for some, it is not the case for all young adults. In fact, there has been a large turn in the housing market leading millennials to buy homes more than ever before.
Recent surveys have attributed this recent change to the millennials furry children. The leading reason young adults are buying homes is so they have a nice place for their dogs. There are many apartments and condos that have strict dog restrictions and a way around that is buying your own home.
When it comes to buying that perfect home, a one click purchase is not available. Millennials are a very savvy generation. They do their research before making decisions and purchase. They typically have an idea of what they want. In the age of apps, amazon, and google, you can buy just about anything- except homes.
Millennials can and are buying homes. There are just a few steps that need to take place to make the process as smooth as possible.
5 steps to buying a home in your 20’s
- Be ready to commit. Most home buyers stay in their home for 3-5 years. When looking at homes, it is important to consider this factor. Be ready for any maintenance required as well, such as yard work and minor home repairs. If looking for property with a yard for the pup, consider the size and maintenance requirements.
- Know your finances. When buying a home, the lender will look at finances under a microscope and run a fine comb through them all. They will look at current habits, bills, salary, and bank statements. Knowing how much money is coming in and out and how much can be allotted to a monthly mortgage is important. Also, get familiar with things like homeowners fees, insurance, and property taxes.
- Know your credit. Lenders closely consider credit scores and will give a better interest rate for higher scores. Along with knowing your credit, you should start saving money for any upfront costs, repairs, down payments and extra cushion for emergencies.
- Time to find a lender and get pre approved. Shop around. Find a lender you like and that works great with your financial situation. Some lenders are more lenient than others. You may want consider credit unions and banks for pre approval as well. The government also offers FHA and VA loan options that are usually great for first time buyers.
- Work with a Realtor you trust. Again, shop around. Meet with a few realtors. Working with a seasoned realtor that understands your needs as well as views the sale as an investment and is a savvy negotiator is key. Typically using a friend or an unseasoned agent can lead to many future pitfalls. When you find someone you trust, they will help you through the entire sales process from first negotiations to getting your keys in hand.
Investment can not be ignored when looking into buying a home. Many millennials in the buying market are taking this into account as well. A great first home can even be a duplex, allowing you to live on one side and your tenant on the other side paying the mortgage. This is a great way to start a investment portfolio, get out of the rental game, and have plenty of yard space for the pup.
Learn more and get started on your home search at Gracefrankgroup.com