The sooner you buy a home, the farther ahead you’ll be—but how can you prepare yourself for such a major purchase?
Young people are in the perfect position to get ready for home ownership. Even if you’re not ready quite yet, preparing for the future is easy if you take the right steps.
Home Buying for Young People: Plan Ahead
Aside from saving money (stashing away 10 percent of all the money you make is never a bad idea; in fact, you should save more if you’re able), you can line up your finances now so that you’re fully prepared when you want to purchase your first home.
3 Ways Young People Can Plan for Home Ownership
- Save, save, save!
Start keeping your extra cash in a savings account, set up a CD or money market account, or purchase bonds at face value.
- Build your credit.
Apply for a credit card, but make sure you use it responsibly. If you can, apply for a car loan. Again, make sure you’re making every payment on time.
- Gather information.
Learn everything you can about the home buying process, including how much money you need to save for a down payment and the pros and cons of home ownership.
Is Buying a Home a Smart Choice when You’re Young?
In most cases, it’s a smart choice for responsible young people to purchase a home. However, there are a few caveats to that:
- You need to buy a home you can afford, not just in the short-term, but in the long-term as well.
- You need to have good credit habits and be able to make every mortgage payment on time.
- You need to be prepared to talk to several different lenders so that you can find the most favorable terms.
- You need to know about programs available to assist you, as a first time homebuyer, with your down payment. (Your Main Line real estate agent may be able to point you in the right direction.)
Working with a Pro
If you’re purchasing a new home, particularly if this is the first time you’ve ever made such a large purchase, you need to—no, you deserve to—work with a professional who knows the ropes.
Call me at 610-608-3119 or contact me online. I’ll be able to start looking for homes that meet your criteria and your budget, and I’ll give you all the tools you need to make your first venture into the Main Line real estate market a successful one.
Link to How Much Do I Have to Save; Link to Pros and Cons of Home Ownership