No millennial avocado jokes to be found here. According to the National Association of Realtors 2017 Generational Trends Report, millennials were the largest share of home buyers at 34% with 66% being first-time home buyers.
Like most millennials, the idea of purchasing a home can seem daunting; most of this age group is weighed under the crippling debt of student loans, making it almost seem impossible to reach that 20% down on a home mortgage. If you’re a first-time buyer (and in a younger generation), how do you know when you’re financially ready to purchase a home?
Bankrate revealed a financial milestones survey that found Millennials and Gen-Xers believe 28 is the ideal age for someone to buy their first home.
So where do you fall in?
Before you sign those papers, make sure you have your finances in order.
- Credit card debt
- This is incredibly important. Your credit score greatly impacts the loans you can access.
- Previous Loans
- Ouch – the reminder of student loans. How much are you paying a month? Any car payments?
- Saving for a Down Payment & Closing Costs
- It’s no longer truly necessary for a 20% down payment on a home to get started – some down payments can go as little as 3.5%
- But don’t forget everything that comes after that down payment – do you have money set aside for closing costs and fees or for any home renovations you’d like to accomplish?
Settling Down & Being Mr. or Ms. Fix-It
There’s more to purchasing a home than just organizing your finances – where do you see your future with this home?
Being a first-time homebuyer is an exciting (and sometimes frightening) experience. But if you’ve answered yes to the above questions, then you’re well on your way to creating wonderful memories in your new home.