Real Estate Watch – Centermac SD, Inc.
Top Considerations For Buying A Home At Any Age
Tips for 20-Somethings
Set yourself up for future financial flexibility. Take a hard look at your income and make a budget that allows you to pay down debt, cover your bills, and put money away in savings. Once you’ve paid off debts, putting away money for a down payment is the next essential step. But keep in mind that you’ll also want to have a financial cushion for unexpected costs such as repairs and maintenance.
Stop the rent race. Once you’ve saved up at least $5,000 to $10,000, stop renting and buy your first house. With an FHA loan, you’ll only need to put down 3.5 percent and some conventional loans may allow for as little as five percent down. Bonus if you can find a home you love with a little equity built-in, such as a foreclosure or short sale.
Check your credit report. You may know your score, but when was the last time you looked at your credit report? You can obtain a free credit report each year at AnnualCreditReport.com. Look for any errors on your report, such as collection accounts and bad debts that belong to someone else. In some cases, credit agencies may mix credit files with another individual. Contact the credit bureau to report the discrepancy and request it be removed from your file.
Get prequalified early. Prequalification is a simple first step you can take to find out approximately how big of a loan, and at what interest rate, you might qualify for. Completing the application takes only a few minutes, no additional documents are required, and there are no fees or costs associated with prequalification.
Make a long-term plan. While the home you buy in your 20s may not be the home you stay in for life, if you want to make a profit when you sell, choose a home you can see yourself living in for at least five years. Although you may not be able to have every feature you’d want in a home later in life, look for something that allows you and your life to grow and change a little.
Keep an eye out for tips for other age groups in the next issue!
Professional Real Estate Consultant
BRE # 02004228
Production Manager, Sr. Loan Officer, PrimeLending
Centermac SD, Inc.
9888 Carroll Centre Rd., Ste 200
San Diego, CA 92126