Home Buying Tips for 20-year-olds
By: Tanya Torres
If you have been considering buying a home and you feel it is the right time to do so then there should not be anything stopping you. However, if you are looking at homes and you are in your twenties then you might come across people who will most likely try to “help” you by telling you that you are too young to buy a home. They might even tell you that you should hold off until you are married because it is impossible to do on your own and so on. Although buying a home can be difficult to navigate through, it doesn’t mean that it should not happen for you. Here are some tips to get you started.
You might have heard that a credit score doesn’t mean anything, but that is not necessarily true. Having a good credit score allows you to make bigger purchases like being able to buy a home. If you are considering buying a home then before you begin doing anything you will need to first work on your credit score and ensure that you do not have any problem areas in it. A good credit score means that you will be able to get approved for a mortgage when you finally decide to buy a home. At this age, you might be dealing with building your credit from nothing, having a low score or a bad one which means that it is crucial to begin preparing it for a home purchase. If you have no credit then apply either for a secured credit card or a regular one to get your credit rolling. If you have credit already established then you just need to make sure everything is up-to-date in your credit history and you lower your balances to 30% or lower.
Do Your Research
After you get your credit situated or as you are fixing everything in that area, you will need to be sure to do an extensive amount of research to prepare you for this huge investment. This is a purchase that you should not take lightly because of how much you are putting into it (money-wise),how long you will be staying there and so on. It is important to know which part of town you want to live in, if there are any grant programs that may help you, how much money you can put down that will benefit you the most, different types of loans, programs that assist first-time buyers and so on. You will also need to know how the neighborhood is so you know what you are buying into. For example, you should check out the neighborhood before putting down roots there by going during traffic hours, checking out the schools, parks and seeing what is around there or how far away you are from essential places and so on.
One of the best ways to navigate through the whole home buying process is by seeing what you qualify for before you get your hopes up. When you get pre-qualified, you can instantly find out which houses work with your budget, which ones don’t, what features don’t work with your budget and so on. By choosing to get pre-qualified, it reduces your time looking at homes that you thought you could afford but will later find out that you did not qualify for.
Save, Don’t Spend
Before you buy your dream home, you will need to get to know your budget to guarantee you are indeed ready for this purchase. If you want to put down a good down payment then you should begin saving as soon as possible. While you are saving for your down payment, you can also look at your expenses and see where you can make cuts to save some extra money. This will also allow you to create a budget plan that saves room for unexpected expenses like buying new tires for your car and so on.
After you have followed all of these steps, it is important to keep in mind this last step which is to be confident in your decision. Although you may receive advice that tells you to hold off, it does not mean that you should follow it. You may be young, but that does not mean that you went into this purchase blindfolded.