For the fifth year in a row, millennials have surpassed baby boomers and Gen Xers as composing the largest share of home buyers. This goes against the common assumption that this generation isn’t interested in responsibility or settling down, and it’s great news for real estate enthusiasts.
If you’re a millennial looking to buy a house, here are five things you can do to make your dream come true:
Pay off your debt
Far and away, the biggest challenge facing millennial homebuyers is student loans. In 2016 alone, the average student loan debt was $37,172 per graduate.
Since buying a house is the most expensive purchase you’ll make, you’ll want to be debt-free before you buy.
Save for the down
98% of millennials buy with a mortgage, and it’s not surprising- most of us don’t pay cash for our first home. That’s why it’s important to have a strong down payment, not only to lower your interest rate but to help you pay off your mortgage even faster.
Stand out in a competitive market
In the past few years, the housing market has had a shortage of sellers, which has increased competition among buyers and raised the prices of homes. First, get pre-approved for a home loan, as it will send a powerful message to the seller that you’re a serious buyer. Second, act decisively.
Find an affordable house
With home values on the rise, it’s important not to give into temptation and buy a home that’s out of your price range. Keep your monthly housing payment to no more than 25-30% of your take-home pay.
Source: Dave Ramsey