Purchasing a home is a big milestone for anyone and can be a smart investment, depending on your financial goals.
But with the high prices and demands for housing today, buying a home has become challenging, especially for younger buyers.
All is not lost, though. While it may be challenging for younger buyers, there are several tactics you can use to make a competitive offer on a home.
How to Prepare for Buying a Home as a Young Homebuyer
Determine if you’ll live in the house for at least 5 years.
When you’re closing on a home, there are several additional costs that go into the final purchase, such as lender charges, title insurance fees, lawyer fees, and more.
With so many additional fees involved, it typically takes 5 years to recover the cost of these fees and see a return on your investment.
Always get a home inspection.
Buying a home is one of the biggest investments you’ll make, so it’s important to be informed about the condition of the home you’re buying.
That’s why a home inspection is essential to feeling confident in your decision. And if you do find anything of concern, you can use it as a bargaining tool to secure a lower price.
Find a lender and real estate agent you trust.
Having the right team backing you up makes a world of difference when you’re buying a home. They can guide you through the process to make your home-buying experience pleasant and smooth.
Get pre-approved for a home loan before making an offer.
When you’re making an offer on a home, you want to put your best foot forward. Getting a pre-approval can make you look like a serious buyer, giving you a leg up over other offers.
A pre-approval confirms that a lender has reviewed your finances and determined a certain amount of money you qualify for. Having that confirmation tied to your offer makes it more likely that you seal the deal.
Down payments: plan and explore your options.
Saving for a down payment is one of the biggest costs when you buy a new home. That’s why saving and planning for a down payment is key to setting your new purchase up for success.
While the rule of thumb is 20% for a down payment, you don’t always have to pay that much, especially if you’re a first-time homebuyer. You may be able to qualify for an FHA loan that lets you put less money down.
Though a larger down payment means more savings, a smaller down payment can help you own a home sooner. Exploring your options and comparing them to your financial goals can help you determine the right amount to offer.
Improve Your Credit Score
When you’re applying for a mortgage, your credit score is one of the most important factors lenders are looking at. The higher your credit score, the better interest rate you’re likely to get.
The interest rate you get significantly impacts your monthly payments. Even if there’s a small difference in your interest rate, it can add up over time.
By having a high credit score, you can save yourself money in the long run.
Explore Your Options to Buy With Confidence
Buying your first home is an exciting experience. By preparing early on and setting yourself up financially, you can feel more confident in the buying process.
If you’re looking for your first home, Hunt Homes Group has a wide range of spec and semi-custom homes that could be the perfect fit for you.
Explore our floor plans or browse our available homes to find some options that are right for you.
See something you like? Contact us today to get one step closer to your dream home.
