Halfway through 2022, Millennials are finally beginning to emerge as the country’s primary homebuyers, becoming the largest generation since the Baby Boomers to take control of the housing market. But this change hasn’t come easy. In fact, Millennials have been forced to overcome a lot of economic and societal challenges to take the top spot.
6 Expert-Level Tips for Millennials Who Want to Buy Their First Home
But if you’re still waiting to become a first-time homebuyer, don’t fret! Over the last few years, we’ve learned a lot about what it takes to overcome the various challenges Millennials must face to buy their first home. So, here are six tips for millennials interested in buying their first home.
1. Pay Off Debt (Including Student Loans)
If you’d like to boost your chances of getting approved for a mortgage, you have to work on your financial situation, which starts with paying off your debts (including student loans). Now, it’s important to remember that it’s not impossible to get a mortgage if you have debt – it’s totally possible! You’ll just give yourself a higher chance of getting approved for a loan with a better interest rate if you have a favorable debt-to-income ratio.
2. Try to Save as Much as Possible
While it’s a myth that you need a 20% down payment to secure a mortgage, the more money you have to put down, the better off you’ll be. A significant down payment will ultimately allow you to secure a larger loan, provide better interest rates, and help you get approved. So, try to save as much as possible, and remember that there are always options available, no matter how much you have to put down.
3. Know Your Local Market
The best way to increase your chances of buying your first home is to have an understanding of your local market. So, do a little research into current interest rates, the selling price of a home in the neighborhoods you like, and whether that aligns with your financial situation. It’s also wise to speak with a mortgage and real estate professional, as they can provide much of the information you’ll need.
4. Focus on Your Credit Rating
While minimizing your debt and saving for a down payment, you should also focus on building up your credit rating. You’re more likely to get pre-approved for a high-value mortgage with a lower interest rate if you have an excellent credit rating. Ultimately, you want to take every advantage possible when you enter the real estate market, so it’s in your best interest to build your credit rating and boost your chances for success.
5. Be Competitive
When you’ve finally found the home you’d like to buy, remember to stay competitive. The real estate market is incredibly competitive, so if you want to secure a house, it’s best to make an offer the sellers can’t refuse. Of course, this is all relative to your local market, so the most effective way to know what you should and shouldn’t offer is by working with a professional (check out tip #6).
6. Work with a Real Estate Professional in Your Area
This may go without saying, but the real estate market is incredibly complex, so it’s wise to work with a professional with tons of experience who knows your area and can help you navigate the home buying process. They’re incentivized to help you succeed and will be your number one advocate during this process. So, don’t hesitate to lean on them with questions or concerns.
If you’re interested in finding homes for sale in Jacksonville, St. Augustine, or anywhere else in Northeast Florida, contact the Welch Team today. And while you’re here, don’t forget to pick up a free copy of our buyer’s guide! It’s packed with valuable information you’ll need to successfully navigate the Northeast Florida real estate market.