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Money Minute
Quick Tips
Tips for Millennials Buying Their First Home
Money Minute
Advance planning and saving are important for first time home buyers.

At one point in time, it seemed like millennials would never buy homes; however, over the past few years, millennial homebuyers have passed up baby boomers and Gen Xers. Here are some tips for millennials to keep in mind when buying their first home.

The first order of business is to take good care of your credit, since most millennials buy their first home with a mortgage. It is very important to regularly check your credit score and report any inaccuracies. Pay all of your bills on time and pay down high balances when possible. As you get closer to buying your home, avoid opening new credit accounts, because this could negatively impact your score.

Next, open a separate savings account to save for your down payment. Make regular deposits into this account with each paycheck. When it comes to making your down payment, you’ll want to be sure to have between 10 and 20% of the cost of the home saved.

Once you get those two things in order, visit a bank to get preapproved for a home loan before you begin making offers on homes. This will help you stand out in a competitive home buying market because it will send a powerful message to the seller that you’re a serious buyer.

At the end of the day, being responsible with your finances will help you reach your goal of being a homeowner.

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