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Tuesday, April 19, 2016

How to Buy a House by 30



Along with the recovery of the market, came the rebirth of the dream to own a home.  More and more young people…ahem…Millennials, are catching the homeowner bug.  Not only are rates still stellar, but younger people are starting to get more savvy about their money.  Turning 30 is already a milestone in itself, but why not mark the momentous occasion and rejoice in all the life lessons your 20s have afforded you and make it the year you buy a home!

Honestly, the younger you are the easier it is to save.  In your early 20s, you’re less likely to have life complications and big expenses such as children, investments or big car payments—the one you got in high school still works and has been paid off!  But unfortunately saving is not necessarily a top priority for someone in their 20s unless already instilled in them at a young age!  But don’t look back with remorse wishing you had known then when you know now.  Start saving today while it’s relatively easy.  Yes, you’re making less, but you’re still used to your college years of living frugally.  While there are lots of options out there for low down-payment loans, but the more cash you have upfront, the better your rate will be.

Sure, you had a credit card in college that you needed to use to pimp out your first dorm room with Bed Bath & Beyond essentials— but those days are over!  You know the weight a credit score can bring and all the opportunities it can unlock.  Remember, it’s not necessarily a good thing to close a credit account, in fact in may end up hurting your credit.  One of the keys to keeping your credit balanced is not purchasing anything you can’t pay off in a month.  More importantly don’t make any large credit card purchases before buying a home, maxing out your credit before applying for a mortgage is a no-no.  The single most important thing to remember is to always pay your bill on time.

Seek out housing opportunities.  New homeowners making renovations in up and coming neighborhoods seems to be a trend.  However, doing it DIY is not the only money-saving maneuver.  Often times you can find great deals when you buy new construction.  Especially if you get in from the beginning.  The earlier you get in the better because generally, prices tend to go up and up after initials sales goals have been met.Developers are eager to sell the first few plots and homes because it’s a big investment for them as well!  Often times you can find great deals in closing costs. 


If you are determined to be a trendsetter by buying into an up-and-coming area, do your research!  Having an agent that is familiar with the city where your shopping can help A LOT in this case.  They have insider knowledge on what’s trending and where local businesses and shops are migrating to.  Additionally, if you know of bigger stores “Coming Soon” in certain areas (i.e. Trader Joe’s or Aldi), those companies put big money into research and development, they not only track the trends, the solidify the “up-and-coming” status. 

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