If you are a millennial and you want to be a homeowner, there are a few things that you can do to put yourself in a better position for purchasing a home.
#1 Pay Off Those Student Loans
It doesn't make a lot of sense to go into a home purchase when you are already carrying around a large amount of student loan debt. If your student loan debt is significant, you are going to want to focus on paying off that student loan debt before you start looking at purchasing a home. Start putting aside extra money each month to pay off your student loans. Try to pay off your student loans or get them down to a very small balance before you start seriously looking into purchasing a home.
#2 Get Rid of Credit Card Debit
If you have credit card debt that is holding you back, put away your credit cards and focus on paying off more than the monthly balance each month. Carrying large balances on your credit card can damage your credit score, and getting a credit balance sent to collections can be even worse. Getting rid of this debt can help you save for a home and can help increase your credit score, giving you more favorable mortgage loan options.
#3 Save Up Money
Next, you need to start saving up money. There are many programs that allow you to put down a down payment less than the standard 20% on a new home, but these programs usually still require you to put down some money. Outside of the down payment for the loan, you will need money to cover closing costs, moving costs, and repair costs for the new home that you purchase. The more you save, the better position you will be to qualify for a loan and to make the transition to being a homeowner without all of the stress.
#4 Start Researching Home Buyer Programs
Finally, take some time to research home buying programs in your area. There are federal, state, and local programs that are designed to help first time home buyers get into the market. These programs may give you a discount if you purchase a home in a certain area, such as a rural area. There are programs that will allow you to put down a lower down payment. There are other programs that will give you money for a down payment. Before you start looking for homes, research the programs that can help you. You don't want to miss out on a program that could have saved you thousands of dollars in interest over the life of your home loan just because you didn't take the time to get a little information before moving forward with the home buying process.
As a millennial looking to becoming a home buyer soon, start by paying off your student loans and paying down your credit cards. Get your debt under control to increase your credit score. Save up as much money as you can, and start researching the home buyer programs in your area that you qualify for that could help lower your costs as a new home owner.
Three years ago, my husband and I started saving money for an extensive home renovation project. While we have been able to save a lot of cash over the last three years, we still don’t have enough money to pay for the upcoming remodeling project we plan to do at our home. Therefore, to raise the remaining funds needed, we are going to take out a home equity loan. If you need to do some home remodeling projects around your home, you should consider taking out a home equity loan. This type of loan can help you pay for important items such as new floors, a new roof, or new siding for your home. On this blog, you will discover the types of home equity loans offered at most lending institutions. Enjoy!