Millennials' Guide to Buying Their First Home
The cost of owning a home is never cheap; however, it is the best investment you can make for your future. While there are loan programs designed to help every type of borrower achieve their dream of homeownership, it is not uncommon for millennials to feel unsure and uninformed about the right steps to take when considering buying a home. To help you feel prepared and informed before embarking on a home buying journey, here are a few questions to ask to get you started in the right direction.
Questions to Ask Before Buying a Home
Before thinking about buying a home, you must ask yourself a couple of questions:
- Am I ready to be a homeowner?
Becoming a homeowner is a privilege that requires significant personal and financial responsibilities. To qualify for a home mortgage, you must have established lines of credit that are in good standing, a healthy credit score, and sufficient income and assets. If you are lacking in any of these areas, it's never too late to start practicing healthy financial habits to help you develop into a responsible borrower and prospective homeowner.
- Do I have enough money to buy a home?
Before making an offer on a home, you must also have enough savings to afford the various fees and costs associated with buying a home.
- Depending on your mortgage type, average down payments can range anywhere from 0% to 20% (or more) of your loan amount.
- You must also have funds to cover closing costs, which are typically 3% to 6% of the amount of your loan.
- The cost of moving and potential home repairs can add up, especially if your home is not turn-key or if you are relocating from another state.
- Before purchasing a home, you will need to make sure that you are comfortable making monthly mortgage payments.
As you can see, the home buying process starts with a self-analysis of your financial situation, followed by a detailed plan to help you become a homeowner. Having a mortgage professional with you throughout your home buying journey can be useful in making the process run smoothly.
If you need help getting answers to your home buying questions, consult with the mortgage professionals at Butler Mortgage.Â
Helpful Mortgage Advice for First-time Homebuying Millennials
The experts at Butler Mortgage have experience working with both first-time and seasoned buyers looking to own a home in Florida, and now Georgia. Our team can help you navigate the mortgage process by matching you with a loan option that fits your budgetary needs. Let us help you find the right loan solution for you by calling 407-931-3800 or by filling out our free consultation form online.
