Millennials are a unique generation. Born between 1981 and 1996, Millennials are old enough to remember landlines and cassette players, but also young enough to want to learn and take advantage of new and changing technology. If you’re a part of the Millennial generation you’ve lived through 9/11, a huge economic recession, the election of the first Black president of the United States, and the legalization of gay marriage. And you haven’t even hit 40. You’ve seen a lot of change throughout your life, and you’re sure to see plenty more.
Perhaps in the midst of all that change and confusion, you’re ready to take a big step toward greater stability in your own life. You’ve saved, you’ve found a job you enjoy, and you’re ready to take the leap and buy your first house. Despite critics who predicted Millennials could ruin the housing market, your generation has actually been buying houses more than other age groups.
Buying your first home is a big step, and perhaps the biggest investment of your life. It is a complete shift from the life of renting and comes with plenty more responsibility. This is a big financial decision for you, whether you’re the sole buyer or you’re investing with a spouse or partner. Don’t let the naysayers get you down. If you have the determination, the financial ability, and a good head on your shoulders, you can be a Millennial homeowner in no time. Here are some extra tips to consider as you begin the home-buying process.
Save, save, save
Buying a house is just as expensive as you probably think it is. Between hiring a real estate agent, getting inspections done, and putting down a down-payment, the upfront costs can be quite great. Not to mention the unexpected expenses. Before you even start looking, it’s important to have a large amount of savings put away.
There are plenty of ways to invest your money to increase your savings while you plan. If you can find good one year term deposit rates, you can invest money for 12 months and collect on interest payments. These short term deposits earn extra money on funds that would otherwise just be sitting in your account. So plan for the future by becoming an investor now and enjoying an annual percentage yield that can help you when you take the next steps towards homeownership.
Taking on a mortgage means taking on a big amount of debt. Try to reduce your existing debt first. Student loans have a hold on millions of Americans, especially Millennials. This debt, as well as credit card debt and car loans, can postpone your dreams of buying a house. Take care of this before you attempt to secure a home loan.
Improve your credit
In order to get a mortgage with a reasonable interest rate, you‘ll want a good credit score. Credit indicates your history of paying off debt and loans. A higher credit score will lead to a lower interest rate. If you score in the 700s or above, experts say you’re likely to get a home loan at a low rate.
Plan the transition
Moving into a new home is exciting, but also a big change. You want to be sure you plan your transition. Perhaps you can’t move in right away and you need to keep some stuff in storage. Look for well-known companies like USStorageUnits. With locations across the country, you can store and organize furniture and other items for your new home easily and efficiently. Plus, if you don’t want to bring some items to the new house, you can continue to store them in your storage unit.
Prepare for adjustments
Remember, owning a home is a long-term commitment. You’ll have more expenses and responsibility than you did in an apartment or while living with your parents. You’re now in charge of a higher electric bill, water for a whole house rather than an apartment, and the maintenance your property will need. It’s important to be mentally prepared for expenses beyond the initial purchase of the home.
As a millennial, you’re probably used to having everyone around you judge and question your decisions. You may run into the same problem when you decide to buy a house. Don’t doubt yourself and your plans. You know what’s best for your life, so take that leap with confidence and conviction.