Millennials are moving on to their next stage in life — young adulthood. They are striving for financial security, looking to purchase a home, and ready to begin a family. Many millennials really want to own a home, but fear they are not financially ready.
Does this sound like you? Then there is good news. Interest rates are staying low, and the job market has steadily improved. So, many who believe they can’t afford a home are incorrect. If you’re looking to buy your first home, here are some steps you can take to help you determine if it’s the right time:
Set a budget
Before you start looking at homes, you’ll want to get a good idea of your current financial picture. In order to help you determine a budget for your new home, it’s also important to ask yourself some important questions like “What is the most you can afford?” and “What is your ideal price range?” Our online mortgage calculator can help you figure out the maximum monthly payment you can afford based on the price of the home after a down payment and life of your mortgage.
Find a mortgage specialist
You can also meet with a mortgage specialist who will review your financial situation and assist you through the pre-approval process to help you determine your budget. A knowledgeable mortgage specialist can help you understand down payment assistance programs and will go over the loan options available to you.
Make a list of necessities
Consider the features you must have in your future home – location, square footage, upgrades, amenities, etc. – to help guide you and your realtor. This will help you better determine what you want and what’s out there to ultimately get you what you need.
Find a good realtor
Use a realtor who’s experienced and knows your area and market. Referrals from family and friends who live in the area you’re looking are a great place to start.
Do some comparison shopping
Check out comparable homes in your area of interest to get an idea of pricing. This will help you better determine a starting offer once you find your dream home.By getting a good idea of your current financial picture, doing some research and partnering with knowledgeable mortgage professionals to help you through the home buying process, you’ll minimize the stress involved and be in your first home before you know it.