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.
The information on this page is provided for educational purposes only and is not tax, legal, financial planning or investment advice. Neither the information nor any opinion expressed in this section constitutes an offer to buy or sell any securities or advisory products. The information provided is general and is not information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security. You should not regard this information as a substitute for the exercise of your own judgment. Investing involves risk.