Your 20s are for partying, traveling the world, and discovering yourself. Right?
That sounds pretty rad to us. But, what if your 20s were also a time for establishing a bright financial future? You don’t have to be a miser who never does anything in order to become a homeowner by the time you turn 30.
With a few tips and some forward thinking, the dream of homeownership isn’t as far-fetched as it may seem. In fact, it might just be right around the corner.
Begin Saving Now
The bigger your down payment, the better interest rate you’ll receive and the lower your monthly mortgage payment will be. It’s substantially easier to save a little each month than to sock up a huge chunk of change immediately. So begin saving now. Take a look at your monthly earnings and expenses. How much money each month are you comfortable committing each month to your future down payment? Set up an automatic transfer to a dedicated savings account for this pre-determined amount. If, at the end of the month, you discover you can add a little more – great! But, these auto transfers take out any of the guesswork.
Make Your Credit Card Payments In Full
Poor credit is one of the largest hurdles first-time homebuyers face. Start establishing a good credit history now by making all your monthly payments in full and on time each month.
Consider Up-And-Coming Neighborhoods
Do you salivate at the thought of buying a home in Bellevue’s Medina neighborhood? Well-established neighborhoods such as this cost a pretty penny. Instead, consider being flexible with where you live. Look at the neighborhoods that are up-and-coming. Look for areas where new developments are being planned. Stores like Trader Joes and Starbucks are also considered good indicators that home values are primed to rise.
Take Stock Of Your Handyman Skills
For potential buyers who aren’t afraid to get a little dirty using sweat equity, buying a fixer-upper could be a great option. Homes that need some TLC typically sell for less. And, by doing the work yourself, you could enjoy a great return on your investment (ROI), when you’re ready to sell.
Ask For Help
As wonderful as it is to do it all yourself, many first time buyers get financial help from family. This could come in the form of co-signing or a down payment gift.
Ready to see where you stand? Contact one of our loan officers today.