Some millennials make the mistake of believing homeownership cannot be achieved at their age. The truth is, buying a home is achievable even when you’re in your 20s – all you need is to create a solid financial game plan, and stick to it.
Here are a few tips:
One of the best ways to save for a down payment is to use the Debt Snowball Method, created by financial guru, Dave Ramsey. Basically, the idea is to arrange your debts according to size, paying off each debt in full until you manage to pay off all of your debts.
It can be hard to start saving, especially if you’re still paying off student loans or other debts. To achieve the goal of homeownership, however, you need to stay motivated and you can do that by setting goals. Take a look at how much you earn each month, take note of fixed costs, and see where you can make spending improvements.
Lower your rent
For most millennials, the rent bill is usually their largest monthly expense — finding a way to reduce that can be a significant step towards increasing your savings. You may want to consider moving back in with your parents for a while, but if that’s not an option, you could look into moving into a smaller space or getting roommates.
Don’t go over your budget
So let’s say you’ve saved up enough and you’ve found a home you love. You make a reasonable offer, but the seller wants more. If you don’t think the home is worth the price that they want – and your real estate agent agrees with you – walk away.Don’t compromise your budget.
Understand the terms
If you’re serious about homeownership, you need to beef up your real estate and mortgage vocabulary. Understanding technical terms commonly used in real estate as well as the mortgage process will make it less intimidating, and will provide more clarity.
When hiring a realtor, communication is key
You will need to work with numerous professionals when you’re buying a home, so it’s important for you to do your due diligence on them.
Look for a realtor who can be reached through different communication platforms. Knowledge and experience are important, but if you’re unable to communicate properly, it’ll be difficult for you to find an ideal home.
Have a DIY approach
Having a DIY attitude towards building and repairing is a fantastic way to save money as a homeowner – you get a certain satisfaction that comes with doing things yourself as well. Try not to go overboard however, and make sure that every DIY project serves a purpose.
Are you ready to become a homeowner? We can help! Call us, the Pannebaker Team, at (864) 606-4465 or email LetsTalk(at)pannebakerteam(dotted)com today.