You are also going to commit to stopping the excuses. With those two things, saving for a house is going to be easy. As millennial home buyers, you have access to a lot of technology and information on saving for a house. A few of my favourite tips include:. You would surprise yourself with how much more money you could save each month just by reevaluating your day-to-day spending and optimizing your saving. This is where I talk about the benefits of working with a realtor ahead of time. I love talking about real estate, so much so my wife often rolls her eyes when I start a conversation about it!
Realtors can be a major asset during and before you buy a home. Is it a downtown condo that you can impress all your friends with?
Is it a fixer-upper that you can build your equity in? Whatever it is, decide and keep it in mind. In fact, print a picture of it and hang it on your desk. It helps me stay focused and it will help you, too. When I bought my first home with my wife, we knew exactly what we wanted. We bought a semi-detached raised bungalow that needed a LOT of work.
We had the full intention of converting it into a legalized two-unit duplex that would put extra cash in our pockets every month and help us pay for and achieve our goals and dreams. It took a lot of work but it puts money in our pockets every month, it paid for our wedding, and it lets us live where we want to live. This is how clearly I want you to be able to tell me about what you want when you buy a house.
In fact, text me or message us in the live chat and tell me exactly what you want. I want to hear it! The next of the tips for millennial home buyers we have is that you should educate yourself as much as possible. Educate yourselves about everything you need to know when buying a home. The internet is like a free online university on everything you ever wanted to know. The next tip we have for you as a millennial, first-time home buyer, is to get pre-approved for a mortgage. You can find out how much you can afford by using our mortgage affordability calculator.
Before you jump in and get pre-approved, make sure you are getting the best rate possible for you and that you understand the mortgage you are getting. These two posts should help you do that. Being a millennial home buyer, this means touring properties online, through pictures and video, and narrowing down the properties you want to see. It also means building a needs and wants list and dedicating as much time as possible to the home search.
You may also want to try tactics like sending your realtor to video-tour the property for you so you can see what the house is like ahead of time for properties that really interest you. As we get close to the end of our tips for millennial home buyers, we have to talk about the actual purchase of the home. There is so much I could link you out to in order to help you with this stage, however, for now, I will cover just a couple of key points. There is a lot you can do to help save you money when buying a home. On another note, the second thing I want to discuss is a couple of important conditions to include when buying a home.
To help you with this, here is a first-time home buying guide:. Check your financial status and the resources at your command. Make sure that you have enough saved in the bank to either buy a house or get a loan for that purpose.
The Start-to-Finish Guide to Buying a Home
Amortization tables are valuable tools in this regard. While a good assessment of your financial condition would give you a better idea about what you can afford, do check your credit worthiness or credit score. It will go a long way in determining the sort of loan you can get and the terms you are likely to be offered. This would give you a specific idea of what you can afford and is an essential part of the first-time home buying guide.
First-time home buyer guide
Now that you are confident of your financial health, start looking for the best possible loan package. There are a multitude of banks offering home loans and other lenders too. Find out about all of them and the deal they are offering. Another essential part of the first-time home buying guide. Keep in mind the second-best option as a back up plan.
If, for some reason, the lender decides to withhold the loan at the last moment, you should have a second option to fall back on.
Otherwise, you may end up high and dry. Any first-time home buying guide would be incomplete without this. A very important part of the first-time home buying guide is deciding the kind of locality you want to live in.
14 Steps To Buying A House – A Complete Guide For Home Buyers
But price is not the only criteria you would be looking at. The distance from your office, the safety of the place at night, the general cleanliness of the area, and the approximate distance from quality schools — everything has to be taken into consideration. Choose a locality which is both affordable and comfortable when buying new home. Never, ever buy a home without conducting a proper inspection. Next, decide which mortgage makes the most sense for you. There are plenty of different options to consider. Although Gilmour advises choosing one of the most common two: a fixed-rate mortgage, in which your interest rate remains steady for the duration of the loan, or an adjustable rate mortgage ARM , in which your rate fluctuates to reflect market changes.
As for the length of your loan, Gilmour favors a year term over 15—even if you think you can pay off your home faster. If you ever need to lower your payment in the future, you'll still have that option. Next up on your to-do list: Apply for a pre-approval, the process in which a lender reviews your financial information—like your credit report, W2s and bank statements—and commits to giving you a mortgage for a specified interest rate.
First-Time Home Buyer Tips
It's a good idea to consider doing this now because it can prove to a seller that you're a qualified buyer, and once an offer is made, the bank will just have to appraise the home—not the property and your finances. But a word to the wise: A bank may approve you for a larger loan than you've determined you can afford. So don't be seduced by their findings—and stick with the number you landed on in step one.
If the idea of not being able to afford your mortgage keeps you up at night, this step is all about assuaging those fears by simulating the experience of being a homeowner—before you buy. Start by totaling up all of the monthly costs associated with a home purchase, including your projected mortgage payment, tax and insurance estimates, HOA fees and home maintenance costs.
And don't worry if you don't have concrete numbers—the point is to see if you can afford a ballpark amount. If the sum of the expenses equals more than what you're paying for housing now, then subtract your rent from the total. The difference is what you should consider transferring to your savings account for a few months to simulate what you'd be paying out to cover your monthly new-home costs.
If you can comfortably pull this off, then rest assured that you can probably handle the typical expenses of being a homeowner. But if you can't—or you're making unpleasant trade-offs—consider readjusting your home price until all of these costs are feasible on your current income. It's the rare lucky person who finds the perfect home within their budget, so before you go house hunting, brainstorm a list of what you absolutely must find in a home—and which features are simply nice extras. Examples of must-haves might include the number of bedrooms and bathrooms, proximity to work and other places you frequent, and access to your preferred school districts.
You might also have a strong preference on the amount of outdoor space a house offers, and whether it's move-in ready. Things that shouldn't be on your must-have list? The way a house is decorated , well-manicured landscaping, a pool—or anything else you can easily fix or install yourself. Refer to this list if you need help down the line making an objective decision between two or more houses—as well as to remind you of what's really important, versus what could be luring you to pay more than necessary.
Now for the fun part: house hunting! Browsing online resources like Trulia for available homes in your neighborhood is a good place to start, and can help confirm whether your budget and house must-haves are reasonable in light of what's for sale.
This is also a prime time to decide whether you'll hire a real estate agent, if you haven't already. While you're under no obligation to do so, there are several potential benefits to working with one. First of all, an agent can provide access to more home options than you'll likely find yourself, as well as set up viewing appointments.
Since home-buying can be an emotional process, an agent can also act as a mediator between you and the seller.
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To find someone, interview several buyers' agents—this means they exclusively represent you, and not the seller, as well—until you identify someone who understands your needs and makes you feel comfortable. As a final step, check your state's real estate licensing board's website to ensure they're registered, and don't have any complaints or suspensions logged against them.