Humaira Amin Raisa
If you believe in yourself – you have decided to take the leap from renting to buying a house – don’t let your age impede you. Follow some steps during the journey to homeownership to experience fruitful results.
- Shore up credit
It’s obvious for you to have low or even no credit in your 20s. You might struggle to get approved for a mortgage for this. So shore up your credit to have a credit card – through which you may pay all your balances on time. With a decent credit score, your chances of getting a mortgage approved increases. Try opening a credit card with a little limit, and pay it off every month.
- Save, save, and save
You need to ramp up your savings alongside building your credit. Buying a house will require a down payment. Aggressively saving cuts down the initial payment easily. This will make it easy for you to afford the mortgage payment. To save up the most, you can take up a second job, create a budget, or discard the non-essential expenses.
- Plan to meet other associated costs
Your down payment and mortgage are, however, are not the only costs that you will have to endure. Brace yourself for the other expenses like moving costs, repairs, new furniture, property taxes, ongoing maintenance, and many more. Make sure you create some wiggle room in your budget plan to accommodate these.
Doing thorough research before purchasing house results in you having the best information to decide. You can find out many down payment assistance programs and grant programs. If you get pre-approval for the loan, you might get on a better footing with your seller.
- Get pre-approved
It means to meet a lender and receive a ballpark figure for that loan amount. The printed letter outlining comes next, probably with an interest rate as well.
- Know where you want to live
Know what your wants and needs are when it comes to housing. Decide where you want to settle for the unforeseeable future. Make up your mind to stay there for at least 3-5 years without shifting.