One of the largest hurdles for millennials home buyers, especially first time millennial homebuyers, is that they buy into the belief that home ownership can’t be achieved due to lack of savings, student loan debt or confusing concepts of credit score. To clear things up, here are home buying tips from millennial home owners.
Home Buying Tips from Millennial Home Owners
Tip 1: Save all you can!
Saving for a down payment is easier said than done. After all, once you graduate from college and are fully on your own, it’s hard to think about savings for a mortgage when you are potentially swimming in student loan debt. To begin saving, consider trying the snowball effect. This is the idea of paying off debts in order of the smallest to the largest. Just like when you make a to do list and complete the easy things first to get some momentum, simply start to pay off debts to built momentum. It’s hard to stick with a budget, especially when it’s your first time doing so. But holding yourself accountable can be the deciding factor on how quickly you can qualify for a mortgage.
Tip 2: Learn the Vocabulary
As much as your real estate agent and lender will help you through the home buying process, learning the jargon will make the mortgage process less intimidating. For example, when your real estate agent talks about PMI and escrow, it’s good to either look up what that means and how it applies to you. Learning the vocabulary used throughout the home buying process is one of the biggest tips from millennial home owners.
Tip 3: Go with what (or who) you know
Real estate agents, lenders, contractors, insurance agents, inspectors… there’s a lot of people you need to work with when it comes to buying or selling a home. The best advice is to go with who you trust. These professionals will be asking you personal questions, and you want to feel comfortable sharing your information with them in a way that furthers the process, not halts it. Hiring a great realtor can make all the difference in having a good home buying experience. You want the knowledge and experience, but you also need to feel comfortable communicating what you want in a home to your real estate agent. Finding the right agent for you is one of the most crucial home buying tips from millennial home owners.
Tip 4: Consider the ROI
While it’s really appealing to buy a house that was just remodeled, it’s not necessarily the best return on investment. If you are looking to own a home for 5 years or less, there is very little upgrading you can do to a home that was freshly remodeled. So make sure when you’re on the house hunt, keep ROI in the back of your mind so you can prepare yourself for success when selling it.
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