Over the past few years, the millennial generation has gotten older and have started to make some adult decisions. One of those decisions is buying a house. Since this is most likely the first time you’re buying home, this process can come with several uncertainties. However, by following a few simple pieces of advice, this process doesn’t have to be impossible.
Look in Smaller Cities
As a millennial, large cities can be a very attractive place to want to live in. Not only do these cities hold large amounts of jobs, but they also provide fun and exciting events and activities to do during their off-time. Of course, with high demand comes high costs that even the best of jobs won’t be able to cover. So if you’re a millennial seeking to purchase an affordable home, you might need to check out smaller cities. You can still live close to the city, but maybe look for a neighboring suburb or smaller city close by.
Pay Off Student Debt
One of the biggest hurdles you may face when seeking to purchase your first home is not your income but student debt. The best thing to do is to get yourself out of debt before applying for home loans. However, this may not be possible for everyone. While house hunting can be difficult with student loan debt, it’s not impossible. One of the best ways to overcome this hurdle is to improve your overall credit score. This will allow lenders to see that, although you do have debt, you also have a history of keeping up with payments as well as keeping other debts low. You may also apply for a down payment assistance program to balance out your initial investment. Many states have these programs in place for first-time home buyers and students.
Research the Buying Process
As a first-time buyer, you are going to have a range of questions, from lender options to HOA fees. A good strategy to follow is to familiarize yourself with the buying process. This will allow you to ask the right questions when being offered loans or being shown a home. In addition, you are better prepared for the challenges ahead, such as receiving a less than stellar home inspection report.
As a millennial beginning to enter the housing market, you’re going to need a lot of assistance to make the process go smoothly. Remember to consider looking at smaller cities, paying off your student debt, and doing your research, you will be more confident in buying your first home.