According to the National Association of Realtors 2019 report, millennials make up the largest percentage of homebuyers. Millennials looking to buy a home also face something many buyers before them didn’t: student loan debt. Based on the stats, this factor doesn’t stop them from finding their dream home. With proper planning, saving, and expert Realtor guidance, everyone can eventually find the right place to call home.
Save For the Down Payment
Due to the age group, the mortgage loan route is most popular among millennials. Saving a good chunk towards your down payment can considerably lower your interest rates, avoid mandatory private mortgage insurance, and lower your monthly mortgage rate. Mortgage brokers, banks, and Realtors recommend putting down 10%-20%. Saving a lump sum is easier said than done, so carve out a solid plan and don’t deviate from it. When you find yourself getting discouraged and dipping into your fund, remember what you’re saving for and stick to it!
Count the Costs
There are a lot of quiet costs during the homebuying process. Besides the down payment, there’s the home inspection fee, earnest money, possible repairs, appraisal fee, insurance, lender fees, and moving costs. Do your research to get a general idea of typical expenses and work with your Lender to estimate how much your fees will be. Use a spreadsheet to track your expenses and homebuying fees to build a budget that covers these costs without pulling from your savings.
Eliminate as Much Debt as Possible
One issue that stops or slows some millennial buyers from pursuing homeownership is the assumption that you can’t afford it. However, you can definitely afford it! Pay off credit card debt, make student loan payments, and eliminate any other debts you may have while saving to buy a home. Hiring a finance coach can also help point you in the right direction if it fits in your budget. There’s a reason why millennials are dominating the homebuyer statistics; you’ve taken steps like these to coordinate your finances!
Understand the Buyer Process
Overall, knowledge of the buying process will make your journey smoother. As a first-time homebuyer, you may not know where to begin in the buying process. Do you know which questions to ask? Do you know how much earnest money you will need or which lender to use to secure your financing? Do you know what is a fair offer price? The benefit of an experienced Realtor is they can not only guide you through the process, but they can ensure your best interests are being looked after as well. Finding a Realtor who will take the time to listen to your questions and answer them thoroughly will alleviate several mistakes and missed steps that could potentially arise without their guidance.
If you’re looking for an expert real estate team to assist you in buying your first home in Dunwoody, Sandy Springs, and the surrounding areas, Karen Cannon Realtors is here to help you. We can help find the right place to call your home. Give us a call us at 770-352-9658 send us an email at Info@KarenCannon.com. Check out our current listings here.