Tips for millennial first time home buyers

Tips For Millennial First Time Home Buyers Florida Title Insurance

Buying a home may seem like a daunting task with many extra expenses involved and plenty of other hurdles to overcome. In reality buying a home has never been cheaper due to low interest rates and never been easier with access to everything you need to buy a home via the internet. As a Millennial First Time Home Buyer there are many programs and opportunities to help you get into a home and get away from renting

Saving Up For A Down Payment Saving up for a down payment is something that can easily be done once you have an idea of how much home you can afford after getting a pre-approval statement a mortgage lender. The key for saving up enough money for your down payment is to do it well ahead of the actual home purchase and make your savings plan an automatic plan that fits into your budget. Yes you must budget, set aside money to save for your down payment which can run anywhere from 3.5% of your home purchase price and up plus closing costs.

If your employer offers it having a portion of your paycheck get directly deposited into a separate savings account is a good way to start saving your down payment. If you don’t have that option then some saving accounts offer the ability to automatically withdraw money from an account, so you can withdraw money from your main account on a regular basis into a savings account so that money is separate from your main spending money. The idea is to setup a regular savings program so money moves automatically and is kept separately in a different account so there is less temptation to use the money.

Low Down Payment Mortgage Programs

One common misconception is that homes require large down payments in order to purchase and as a result is out of reach of most people without a large amount of cash on hand. In fact there are many home loan programs that allow for relatively low to no down payments to help get buyers into homes. The Federal Housing Administration (FHA), open to anyone, offers home purchase options with as little as 3.5% down payment. If you or your spouse is a Veteran you can even purchase a home with 0% down using the loan program from the Veteran’s Administration (VA). Depending on the area you are looking in, U.S. Department of Agriculture (USDA) loans may be available to you as well. USDA mortgages (0% down payments) are available for those buying homes in certain rural areas and who meet the income limits.

There are plenty of home loan programs out there that don’t require 20% or more down payment as noted above. Many of these programs also can provide mortgage loans to those who don’t have the best of credit either. So the ideas of high down payment and not so stellar credit score should not hold you back from buying a home and getting the many benefits associated with homeownership. Sit down with a couple of local mortgage loan officers to get an idea of what is available for you.

Bottom Line While the process of buying a home can seem tough when looking at it from the outside, with proper planning Millennial home buyers can make it easier on themselves. Owning a home offers a number of advantages including tax deductions, building of equity, price appreciation, a place to call your own and more.

By learning about the home buying process you put yourself in a better position to succeed.

sources:

cincinkyrealestate.com

https://artesiantitle.com/