Are you looking to buy your first home? Here are 5 Things to Expect When Buying a Home in Your 20s or any age for that matter.
5 Things to Expect When Buying a Home in Your 20s
Many people dream of buying their own home but many wait until they’re in their mid to late 30s to do so. If you’re in your 20s and feel ready to buy a home or are looking into doing so before you turn 30, congratulations! With that said, buying a home is a big financial commitment so before you say, “I do!” to the home you’re eyeing, make sure to take time to consider the ins and outs of the process.
To help you make the best decision for your personal situation and life, take a look at these 5 things you can expect when buying a home in your 20s:
Consider the best mortgage option.
One of the most important things to consider when you go to buy a home (at any age) is the loan you’ll be getting. From interest rates to time commitment, there are a variety of factors to consider when shopping around. You want to consider the pros and cons of FHA vs VA loans and more, so that when it comes time to commit, you’re absolutely sure that you’re choosing the best option for your life goals and your situation. Some loans offer more flexibility and are less conventional, which could be right for you and your age.
How is your career going?
It can be hard for many people to decide on buying a home in their 20s, as this is when you’re building your career. If you’re someone who projects your career taking off and the possibility of taking a job in another city, that may have better opportunities for you, is it a good idea to buy your home where you’re at, just yet? On the flip side, you may have gotten an early start on your career path and are in the perfect position to grow where you’re at.
Is there a good housing market where you live?
Some people like to buy their first home young and sell it later on, whether because they want to move elsewhere or perhaps they’re growing their family. This can be a great financial decision in some cases, like if the housing market where you’re living is projected to get better due to a boom in people moving to your city from elsewhere. On the other hand, you could lose money if the market takes a downturn when you’re planning on selling.
How is your credit?
Even if you’ve saved up a lot of money over the years, do you have a good credit score? If not but you plan on investing in a home a few years down the line, it’s important to consider building up your credit as this can help you get approved more easily when it comes time to work with a lender when buying that dream home. In some cases, it can be a challenge to be approved as sometimes lenders want to see years of income and stability in a career. However, this isn’t always the case, depending on other factors involving your income, etc. Either way, you’ll need a good credit score to be approved, so if it’s not all that great right now, start working on it today.
Are you ready for the cost?
Buying a home can involve several fees, consideration of the interest rate, saving for a down-payment, so as you can imagine, it’s a serious commitment. From maintenance to furnishing and decorating, it can often seem like the costs never stop when owning your own home. You don’t want to commit to a mortgage payment and be stuck with a home only to find that in a few years, you have itchy feet and want to move somewhere else, but find it hard to sell your home. Are you ready for the high cost of being a homeowner or can you wait a few more years before buying?
If you’re looking into buying a home, consider speaking with a financial advisor if it’s the best financial decision at this time. If you’re ready for this big commitment, congrats! Owning a home is a big achievement!