Buying a home in most cases is one of the biggest financial decisions a person makes in their lifetime, be it a millennial, generation x-er and sometimes even the baby boomers. Real estate is also a great investment! There was a time when people used to think that millennials were less likely to buy a new home in these times, but that notion is a thing of the past. Millennials are looking to buy homes at a greater rate these days and that number is growing.
However, being a millennial means that you might have other outstanding financial issues that might impact your final decision, so, here are some tips that might help you (as a millennial) when deciding to buy a home.
Pay Off Your Loans
Millennials usually have a lot of outgoing loans and huge repayments that trap them into a financial nightmare. So, if you’re planning to buy a home in the near future then you better start paying off your debts as soon as possible. This includes all the student loans, car loans, etc.
Remember that buying a home will affect your finances greatly, so, start clearing your debts, and improve your credit score to win a low-interest rate loan for your home.
If you don’t have a huge sum of money but have plans to buy a home in the near future, then start saving for your down payment now.
There are many ways to save for a down payment, but one of the best is to open a separate high interest-bearing savings account and consistently put money into this account that will not be touched until you are ready to buy your house. Even the smallest of savings can make a huge impact over an extended period of time. The bigger the down payment the lower your monthly payment will be.
Step Into The Market
Once you’ve cleared all your major debts and gathered enough money for the down payment, now is the time to step into the super competitive housing market.
We use the word “super competitive” because the Texas housing market has proven to be one of the better markets in the country with years of data to support that. Not only are you competing with other millennials but more experienced home buyers and older individuals with a longer credit history, so, your competition is going to be tough.
A better way to seal a deal early on would be to search in one of the less competitive markets. Be sure to consult with a Realtor who can assist you on these markets. You should always get approved for a home loan even prior to making a deal because this way you’ll know clearly how much you can spend, and what are your limits.