It’s a popular misconception that millennials aren’t buying homes. In reality, millennials have made up the largest home buying market in the United States for the past 5 years. The American Dream of homeownership is still alive. Still, there are unique challenges that face this generation when it comes to purchasing a home. If you’re a millennial or a first-time homebuyer, here are some tips on making your dreams of becoming a homeowner come true.
Minimize Debt
If you’re young, chances are you may have some form of student debt. Having high debts is the biggest challenge faced by potential homeowners. While it may not be feasible for you to pay off your debts prior to purchasing a home, minimizing your student loan and credit card debt as much as possible before applying for a mortgage will be an essential step toward owning the home of your dreams. If you want to know more about what goes into the process of getting approved for a mortgage, take a look at our blog on mortgage loan processing.
Save for a Down Payment
Having a strong down payment ensures that you’ll get a more affordable deal on your monthly mortgage payment. A down payment of 10-20% will secure a lower interest rate and will lead to you paying off your mortgage in a much shorter time frame. A down payment of 20% or above will also help you avoid taking out expensive private mortgage insurance.
Find the Right Market
One of the biggest challenges in buying your first home is the cost of rising home values. Seeing the expensive costs of homes can be discouraging to first-time buyers, especially those who have just left school and are attempting to find stable jobs. But don’t let this stop you. With enough research and patience, first-time homebuyers can find an affordable house that still meets their needs. Research real estate trends in your city in order to take advantage of up-and-coming buyer’s markets. This will also help in gauging your home’s potential resale value.
Educate Yourself
There are plenty of obstacles for first-time homebuyers. Educating yourself is the best way to overcome the barriers you will face. There are plenty of resources that are designed to help first-time homebuyers. Cities may offer programs that can help you to subsidize your down payments. Many banks also offer programs for first-time homebuyers that can help them get approved for a mortgage with standards that are less strict.
Partner with the Right People in Louisville, KY
Partnering with the right professionals can be a key factor in your success as a first-time homebuyer. Finding an experienced agent who knows what they’re doing and can take time to explain things to you will be immensely helpful in your home buying process.
But an experienced real estate agent is only one part of the team you’ll need. The most critical part of the home buying experience comes at the end of the process—the closing.
In Kentucky, anyone can handle a real estate transaction and no licenses or trainings are required. Throughout the entire process of finding and buying your home, you will be making decisions that have legal consequences. Title defects, transfers of deeds, and property defects are all examples of issues that need to be tended to by qualified hands. Having a competent real estate attorney involved from the very beginning will allow a proactive approach to potential problems.
At Borders & Borders, our specialty is real estate closings. From first-time homebuyer purchases to million-dollar commercial and residential closings, we handle every client with the care. Contact us today to ensure your success as a first-time homebuyer.