Buying a home may seem like something that is hard to achieve especially in your 20s; however, it isn’t impossible with the right mindset and determination.
Many may argue that Millennials are forgoing home ownership for two reasons. The first one is that they wait until marriage as at that point, they probably have a better idea of where they want to live, stability in the workplace, etc. The second one is they value low-key, low-maintenance lifestyles. Home ownership often doesn’t fit this value point. But in reality, owning a home is still a great investment for building your personal wealth. Here are some tips on how to make home buying achievable.
If you have established credit, be sure to review your credit report and keep your balance at 30% or below your credit limit in order to boost your credit score. It is also important to ensure that your balances are always paid on time.
- Pre-Approved Mortgage
There are also many first time home buyer programs that you could possibly qualify for such as the First-Time Home Buyers’ (FTHB) Tax Credit, Home Buyers’ Plan (HBP), and GST/HST New Housing Rebate. It would be important to look into these as you are getting a pre-approval.
- Save, Budget and Track
This will be the most important step to buy a home in your 20s. Keep a goal in mind of how much you want to save a month and put aside this money consistently for six to 12 months before you want to buy. This will help you build up your down payment fund. Keep in mind that you will also need extra money for closing costs.
- Research and Plan
Plan appropriately and timely. Don’t rush yourself through the process.
- Don’t Buy If You Can’t Afford
This is key to remaining a 20-something homeowner. When you have a low salary, large student loan payments (if any) and other variables in your budget, it’s important to buy a home you can comfortably afford. Don’t forget to account for the expenses that would be added to your budget with a home such as mortgage, taxes, insurance and maintenance. Also keep in mind that just because you were approved for a certain amount, you do not need to purchase up to that limit.
Home ownership is smart, but it can be expensive if you don’t prepare.
With these six tips on hand and preparing yourself the best way you can, home ownership is possible in your 20s.If you have any questions or need help coming up with a plan, just give me a call as I am ready to assist you.