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How to become a millennial first home buyer

November 6, 2019

Over the years, the headlines have portrayed millennials as a generation that lacks interest in home buying. Student loan repayments and rent obligations can take a toll on your finances, but that shouldn’t block your dream of home ownership. Here are tips to become a millennial first home buyer.

Forecast all expenses, work, and save

You need to be aware of both short-term and long-term expenses of buying a home. If you get a tax refund, a bonus, or a cash gift, deposit it into your savings account. You can take another job temporarily to get more money to accumulate more savings. Moving in with your parents temporarily to cut your expenses isn’t such a bad idea.

Check your credit

Your credit profile can determine your mortgage approval, loan amount, the terms of payment, and the interest rates. Before beginning the home buying process, consider checking your credit. Be on the lookout for errors that could be dragging down your credit score down and dispute them. Explore ways to improve your credit rating, like clearing outstanding debts.

Get a pre-approval letter

When you are about to buy a home, it is wise to get preapproval that can give you an idea of how much the lender is willing to lend you. The estimate is based on an examination of your finances, which may determine how much you can afford to pay. A seller may give you an upper hand over other buyers if you present a pre-approval letter.

Stay below your pre-approval limit

While you can technically afford a house worth the pre-approval amount, remember that it is just an upper ceiling. Many expenses can arise right after you buy the home. Instead of maxing out the amount, look for properties that cost a little less and leave a little wiggle room for unexpected costs.

Study the market

Knowing precisely what other homes are selling at in the area you are looking to buy a house in is essential. It can give you a solid idea of how much you should pay for a home with similar specifications. This knowledge can help you negotiate better and avoid being duped.

Talk to Empowered Finance today, and we will address all your first home buyer concerns.

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