What Are The Initial Steps For Millennials To Buy A Home?

Though some elements of the real estate market in America will always stay the same, the entire process from start to finish changes from generation to generation. New technological tools, regulations, laws, and mobile apps change the process from time to time, making the initial steps millennials need to follow different from what baby boomers were told decades ago.

Millennials are into buying homes, and they’re ready to do it. 86% of millennials consider owning a home to be more affordable than renting, and 80% of millennial buyers say homeownership has positively impacted their long-term finances (stats from the New York Times).

If you’re a millennial who’s ready to start the process, follow these tips for making it as easy as possible:

1. Cost Counting: There are extra costs associated with buying a home. There are buyer’s costs, moving costs, closing costs, and maintenance costs. After counting all of those costs, if you are unable to shoulder the transaction, consider a more affordable one.

2. Down Payment Programs: Millennials have it tough today. You’re laden with debt and don’t know what to do about it. Don’t assume you CAN’T have a home, either. There are many down payment assistance programs, as well as realtors who can show you neighborhood gems within your budget.

3. Define: You need to sit down and make a list of what’s most important to you in your new home. Rank it by importance. Bring this list with you on tours so you don’t lose sight of what’s most important to you in your new home.

4. Mortgage Rates: Mortgage rates are on the rise today, which means the economy is growing. However, these rates will continue to rise as the Fed raises them. If you’re on the fence about buying, deciding to do so sooner rather than later is in your best interest. 

5. Realtors: You can only try and spot hidden cracks in homes so much without assistance. Realtors are experts at spotting faulty deals and will work with you to ensure you get the best deal. Plus, they are community aficionados and will point you in the right direction.

Lastly, it’s important to be patient during the home buying process. The more impatient you get, the more likely your negotiation will fall through when the other party can sense how desperate you are to buy the home. Instead, remain calm, and dream about the renovations and updates you’re going to install into your new home when it’s finally yours.