How to Easily Buy a Home in Your Twenties
Homeownership doesn't have to be a middle-age goal. Buying a home in your twenties is totally doable—and can be achived easily and without stress if you do it right. It's all about setting a goal and taking the necessary steps to achieve it, just like with any other major life achievement.
So where do you start and how do you do it? Let us help. Here are six steps to help you achieve that goal of homeownership in your twenties with ease and confidence.
1. Know where you want to live.
This might actually be the hardest part about purchasing a home in your twenties. The 20s are usually a time of exploration and freedom. But if you're seriously considering purchasing a home, you have to know where you want to "settle down", at least for the next 5 years or so. Hopefully you've had a chance to live away from your hometown and experience life in other areas before making this decision. Or maybe you love where you grew up so much that you wouldn't ever think of leaving. Whatever the case may be, knowing where you want to be is the first step.
2. Check your credit line.
Okay, let's talk about credit. In your twenties you may have little to no line of credit established. So that means you're going to have a tough time getting approved for a big loan like a mortgage. Your first step in establishing a credit history is by opening up a credit card with a low limit and paying it off each and every month. If you already have an established credit line, ensure it's in good order. Review your credit report and make certain that your balances are at or below 30% of your credit limit. And by all means, make sure you're making your payments on time.
3. Know what you can afford.
This is where you roll up your sleeves and really start to dig in and figure out exactly what you can afford when purchasing a home for the first time. You can't shop if you don't know what your budget is. Start by doing your research and using the many online tools available to you. Play around with the numbers and explore your options to see how your monthly payment would be affected depending upon your interest rate and money down. You can also get pre-qualified with any lender, either the bank you have your checking and savings accounts with, or with home lenders like Quicken Loans or LendingHome.
4. Be serious about saving.
Once you know what you can afford monthly for a mortgage payment, it's time to get serious about saving money. Not only do you have to be able to comfortably pay the mortgage each month, you also need that big chunk of money for a downpayment. Do you have a nest egg saved? Any monetary gifts from family you've been holding on to? If so, use them. If not, it's time to trim back that budget and save wherever and whenever you can. Focus on your needs and let go of your wants for now. You may even have to take a small side-gig for the time being. Do what you have to now to prepare for tomorrow.
5. Research downpayment options.
Next up is to research the downpayment options available to you. Go online and see what's out there and also talk to professionals in the lending field to make sure you're not missing out on opportunities to pay less. Specifically look at the local area you're interested in and see if they have any downpayment assistance or grants that are available to first-time homebuyers. Doing your research and talking to the right people could save you big bucks and ease the burden of saving, so it's well worth your time and effort.
6. Do your homework on the house.
Just like doing your research for your financing, you also want delve into the homes that pique your interest and get to know them as well as you can before you make any kind of commitment. Unless you have a real estate background, this is the point where you want a reliable and experienced real estate agent on your side helping you navigate your way through the current market. A good agent can help you with the finer points of home purchase. Your job is to get to know the neighborhoods, talk to people in the community, and find out more about the homes you're really interested in to see if they're a good fit for you.
From this point on, it's only a matter of time before you're ready to sign on that dotted line and purchase your first home. It's one of the most rewarding experiences of your life—and when done right, it's a momentous occasion that you'll remember for years to come.
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Are you looking to buy a home in Emerald Isle, NC? Sun-Surf Realty can help!
Get started by talking to one of our experienced local real estate agents and we'll help you navigate the market and narrow down the best options for you.