69% of college graduates in 2018 had taken out student loans with an average debt of $29,800 by graduation. Despite this type of debt that many millennials are dealing with, buying a home is still part of the plan.
People used to think that millennials were never going to buy homes, but they are actually buying more homes now than other generations.
It can be very expensive and time-consuming to purchase a home, so doing it the right way is crucial.
If you’re one of thousands of millennial home buyers that are ready to find your dream home, check out our top 5 tips before buying a house. It may save you some time and some cash.
Millennial Home Buyers: Top 5 Tips to Know
1. Think About the Long-Term Investment
It is expensive to buy a home, so you want to buy a home that you know you will like even in a few years.
When thinking this way, you should consider what your goals are. Do you need extra rooms for a family? Are you interested in this type of area for the right reasons?
You are buying a house for right now, but you’re also buying a house for the future version of yourself. Consider where you eventually want to be on a personal, social, and financial level when you are picking out your house.
2. Make Yourself Stand Out
Gen-Xers are usually trying to buy homes that are a little larger, so your competition will be other millennials and baby boomers that are moving into smaller homes as empty nesters.
You may not have the home buying experience of a baby boomer or the budget of other millennials, but that doesn’t mean you can’t find a house.
Get pre-approved for a loan before you start your search. Make sure you get things done in a timely manner so that you don’t lose out on opportunities. Lastly, be cordial and kind with sellers because it will help them to remember you.
3. Budget for Buying a House
As stated previously, many millennials are in debt, whether it be from student loans or credit cards. A good idea is to try and pay off that debt before you buy a home.
Remember that you still have to pay for a variety of other things besides just the house when you are buying a house. If you want to have nice furniture or even landscaping around the home, it costs money.
You have the down payment, the closing costs, the realtor costs, and everything else to consider as well. This can add up fast.
If you have bad credit as a result of poor financial decisions in the past, your options for loans may be a little limited. The good news is that income based loans can be a great choice for someone in your situation.
Your budget is crucial and you should always consider the additional costs that may not be obvious at the beginning.
4. Get Some Extra Experience for the Future
It can be scary to buy a home for the first time, but it’s a lot worse to do it without knowing what you are doing!
You can work with experts in the field that will really help you figure out how this process should work and how you can make better decisions as a homebuyer.
An agent that has experience, but will also listen to what you need, is going to be the perfect fit for someone that is new to this process.
5. Don’t Settle for a House You Don’t Like
It may seem obvious, but you shouldn’t buy a house you don’t really want to live in. This may mean that you have to see a hundred houses before you find the one that you like and that’s fine.
When you buy a house that you don’t like, you are not going to be happy there and you will regret your decision sooner than you think.
If anything feels wrong about the home or you just have a bad gut feeling, it is better to walk away and find something else.
Millennial Home Ownership
Millennial home buyers are everywhere today and buying a home now in a seller’s market can be tough. It doesn’t have to be impossible though, especially with the help of an experienced agent.
If you’d like to learn more about how to style some of your rooms once you find your perfect starter home, check out our blog post about how to style a man cave.
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