Buying your own home used to be the “American Dream”, but now for many younger people it has become unobtainable. People in their twenties are purchasing homes less often now and are instead opting to rent or lease their property. Buying a home costs hundred of thousands of dollars, money that people in their twenties typically don’t have. Many people that go to college have too much student debt to receive a home loan, and those that entered the workforce out of high school likely won’t be able to find well paying jobs to support buying a home. So how exactly can someone in their twenties purchase a home? Here’s everything you need to know about buying a home in your twenties and how you can pull it off.
Save Your Money
One of the best ways to buy a house in your 20s is to start saving your money early. Since you will probably only have been in the workforce for a decade or less, you likely won’t be able to save a massive amount of money. In addition, it might be difficult to set aside money to save when you are still trying to get your feet under you and possibly have to deal with things such as student loans. However, if you start saving up money as soon as you enter the workforce, then it could actually make a sizeable difference. Every little bit will help when you’re trying to secure a loan for a home, and if you are able to chip in a sizeable amount of your own money, then you will be in great shape to purchase your own home before you turn thirty.
An important aspect of buying a home in your twenties is utilizing the research tools that are available to you. There are plenty of sites and services out there that allow you to compare prices and locations of homes that you might be interested in. In addition, there are plenty of investors out there that you could do research on in order to find the best interest rates on your home loan. A little bit of research can go a long way in getting you a great home or deal and can make the home buying process much easier and smoother.
Find A Nice Area
One of the lesser known aspects of purchasing a home when you are young is the area the home is located in. There are many things that you need to think of when purchasing a home, and some may not even be relevant to you when you buy the house. For example, you may be satisfied with your job now, but what if you aren’t in five years? Do you live in an area that will allow you to change companies and expand your career easily. In addition, you may not even have children now, but perhaps you will down the road. Is the home located in a safe neighborhood for children? What is the school district the home is located in like? These are all the things you need to consider when buying a home, even if they might not affect you immediately.
One of the best ways to secure a home loan is to build strong credit over the years. This can be achieved by ensuring that you are making payments on all of your bills and by not going into too much debt. If you have a poor credit score then likely no one will give you a loan to purchase your first home. If you have bad credit and are lucky enough to get a loan, then the interest rates will likely be extremely high since you would be viewed as high risk. This is why building a strong credit score is absolutely vital to buying a home in your twenties. If you want to raise your credit, then you can take out a small loan that you know you can pay off quickly, or get a credit card and make small payments over time. Building credit won’t happen overnight, so it’s something you will want to start doing in your early twenties. This way you’ll be well prepared to purchase your first home before you turn thirty.
One way to ensure that you can afford a home in your twenties is to ensure that you don’t splurge too much. Buying a home is a monumental occasion that will have a major impact on your life, so you certainly shouldn’t settle with something you’re not satisfied with. However, that doesn’t mean that your house has to be mansion or over-the-top. You’re still young and have plenty of time in your life to upgrade your position, but when buying a house in your twenties it is probably best to refrain from splurging. This means that if you’re looking at a house in the Nashville area, then you may want to choose something in a cheaper area rather than the rich affluent suburbs. You of course should be happy and satisfied with your home, but if you want to avoid falling into crippling debt, then avoid splurging and purchasing anything that you can’t afford at the moment.