Owning a home is a great financial decision. If you are ready to stop throwing money away on rental payments, read up! It may seem impossible to twenty-somethings fresh out of school to buy a home on their current beginning-of-their-career salary, but
it is not. We’ll tell you the steps to take so you can own a home before you’re 30!
- Know Where You Want To Live
There’s no point buying a home in a place if you are unsure of where you want to live. Buying a home is a time and money consuming investment. You don’t want to put it back on the market after two years because you don’t like the location.
2. Build Your Credit
You are still young, so it’s okay if your credit score is low. But, to get a mortgage, you will need to start boosting that score. Open a credit card if you haven’t already and make purchases that you can pay off monthly, on time! Do this ideally for
year or more to have a positive effect on your credit score.
3. Get Pre-Approved for a Mortgage
You shouldn't start looking for a home until you find out what you are able to afford. This gives you plenty of time for ample research on rate options.
4. SAVE Aggressively
This is the most important step of them all. You must start saving as much as you can for the next 6-12 months (at the bare minimum). You will need this money for a down payment and for all home associated costs including things like furniture, closing
costs, appliances, utilities, etc. If you spend all your savings on the down payment, you will be an unhappy homeowner the minute an unexpected repair is needed. Set a percentage goal of how much of your paycheck you can save. At the same time, look at
your current bills and decide if there are any you can trim. You may have to live sparingly until you have enough money saved for your home.
Buying a home in your twenties is far from impossible. It just requires a lot of smart saving and forward thinking. If you know where you want to live and are ready to settle into a home, there’s no time like the present to make your home ownership dreams