Owning a home in your twenties is not the pipe dream that you may have made it out to be. Frankly, it is highly realistic to make home ownership a reality. Read on for more!
Focus on saving up for a down payment. You may think that it’s a requirement for your down payment to be 20%, but this is a common misconception. Down payments can be as low as 3%. If saving 20% is out of reach, as it may be for many, there are different options. You can either apply for down payment assistance, or you can ask for financial assistance in the form of a gift from family members, which is non-taxable. As with any tax advice, always speak to a CPA first. In addition to this, a good credit score is something that is vital when wanting to qualify for a loan. Therefore it is important for you to keep off any debt and stay knowledgeable on your credit score.
Once you feel you can begin the home buying process, you should stay away from expecting your first home to be your dream home. Also, don’t expect that it is going to be your last. This is an unreal expectation, and it will be much more expensive if you plan on finding your dream home right off the bat. Following this, you should plan to have an emergency fund as homes are costly. Having a rainy day fund can save you a great deal of stress if you find yourself in a pinch.
Our biggest piece of advice is to budget yourself. Begin saving as soon as possible and you will be very happy once you have enough for a down payment. You will be incredibly grateful when you own your own home, so contact your loan officer today to make your dream a reality.