Mortgage Tips for Millenials

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Millennials are the next wave of home buyers, but many feel becoming a homeowner has become more challenging for young people, but your first home is closer than you think! Here are some tips to help millennials (and any potential home buyers!) prepare to purchase your first home.

  • Consistent Employment: Lending companies not only want to see you are employed at the time of a mortgage application, but that you have been employed in the same industry for at least 2 years. If you have moved around every few months, especially within very different fields, it may cause problems in getting your loan request approved.
  • Learn about Mortgage Payments; When trying out a mortgage calculator online many people think they can afford a certain amount. It is important to understand that a mortgage doesn’t solely consist of principal and interest. There is homeowners and other types of insurance payments that need to be factored in. Some communities have homeowners association fees you as a homeowner will be responsible for. Real estate taxes need to be paid as well. All these factors need to be considered when budgeting to buy a home.
  • Watch Your Credit Score: There is a reason everyone tells you to check your credit score and to do things to “build good credit”. Credit is important, and one of the most important factors in getting a good interest rate on your mortgage or even being approved for a loan at all.

Owning a home is a big responsibility, but one that is possible if you prepare and understand the process. It is a big decision, but if the time is right and you found an area you want to live in for some time, it’s often smarter than renting month after month because you can build equity. Owning a home is generally a long term investment, but one well worth it! Your realtor is also a great resource for helping answer questions on the process!

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