Whether you’re in your twenties or early thirties, you’ll probably be purchasing your first home soon. Before you make your first offer, read this quick guide to home loans for Millennials like you.
Make Sure Your Finances Are in Order
According to loansbyjacinda.com, you’re likely to qualify for a home loan if you have a good credit score. Start getting your finances in order. Pay all your bills on time and aim for a lower debt-to-income ratio. It would also help if you spend less on unnecessary purchases. Now is the right time to start saving money for the down payment on your future home.
Calculate How Much Home You Can Afford
One way to do this step is to get pre-approved for a mortgage. The mortgage preapproval is essential in the home-buying process, as some real estate agents won’t bother showing you homes if you don’t have it. Once you get a preapproval for a particular amount, look at your savings and do the math.
Shop for the Perfect Loan
With thousands of lenders and banks offering mortgage loans, finding the perfect loan could be challenging. Spend time looking for the lender that offers the most favorable interest rates. Consider lenders that provide first-time homebuyers with loans that only require a 3% to 5% down payment.
Be Aware of Closing Costs
Many Millennials who plan to purchase a home are not aware of the closing costs, which include all the fees you need to pay to complete the real estate transaction. Before you move in, you have to pay for title insurance, survey fees, taxes, home inspections, and other expenses. The closing costs usually range from 2% to 5% of the total price of your home, so you better prepare for this.
Purchasing your first home can be an overwhelming process. However, if you do proper research and if you complete these four steps, you’ll be more than ready to buy your first home.