01/26/2021
Top 3 tips for millennial homebuyers
1) I would recommend working on your credit to get it as high as possible. Most lenders want to see a 640+ Credit Score, the higher your credit score the lower your interest rate will be, in the end saving you a lot of money.
2) You are going to want to have money to cover your downpayment, closing costs, and some set aside for emergencies after you are in your new home.
3) Explore your options for first time homebuyers. There are FHA programs that allow you to put 3.5% on your first home. Down Payment Assistance is an option where the lender will cover your down payment, allowing you to avoid making a down payment.
What is the biggest mistake they should avoid?
You should avoid is making big purchases on credit while under contract. Any big purchases that will impact credit, need to wait until you close on the home. Time after time, I hear stories of clients buying a car before their home closes and then they don’t qualify for the home they are under contract for.
Should you buy a home?
YES, when you get locked in on an interest rate that is fixed for the whole term of the loan. This means if you are paying $1,500 on your mortgage it will still be $1,500 in 30 years. As for rents, they raise on average 5% every year.