5 Tips for Young People Looking To Buy Their First Home

Dated: June 16 2022

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If you are a young person who is looking to buy your first home, you may be feeling a little overwhelmed. It can be difficult to know where to start, especially if you are new to the housing market. That's why we have put together this list of five tips for young people looking to buy their first home. Keep reading for some valuable advice.

1. Save for the Down Payment

If you want to buy your first home, it is crucial to start by saving up for a down payment. Many lenders will require that you have a down payment of at least 20% of the purchase price to qualify for a loan. This can seem like quite a lot, but there are plenty of ways to save up for a down payment. You can start by setting aside money each month into a dedicated savings account. Additionally, you may want to consider asking family or friends for help with your down payment. Down payment assistance (DPA) programs are also available through many state and local governments, so be sure to check them out if you need financing.

2. Shop Around for a Mortgage

Once you have saved up enough for a down payment, it is time to start shopping around for a mortgage. There are many different types of loans available, so it is essential to do your research and find the one that best suits your needs. 

3. Get Pre-approved for a Mortgage

It is imperative to get pre-approved for a mortgage. This will give you an idea of how much money you can borrow and help you estimate your monthly payments. It is equally important to compare rates from multiple mortgage lenders before opting for one. You can also talk to a housing counselor about your options and what type of loan would be best for your situation.

4. Budget for Long-Term Costs Associated With Home Ownership

Another important tip for young people looking to buy their first home is to make sure that they are financially prepared for the responsibilities that come along with homeownership. This includes things like budgeting for repairs and maintenance, as well as having enough money set aside for unexpected expenses.

5. Prepare for Hidden Costs of Homeownership

Once you have found the perfect home, it is essential to remember that there are still other costs associated with purchasing a home. These include closing costs, home inspection fees, and down payment insurance. Be sure to factor these additional costs into your budget when determining how much house you can afford.

Thinking of Buying Your First Home?

Purchasing a home is a big decision so if you have any questions about buying your first home, ensure you speak with your real estate agent. And if you plan to buy a house in Missouri, we can help you find a house you’ll be excited about owning. To learn more about houses in Missouri for sale, contact us at (847) 858-4785.

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Merry Anne Rutledge

Hello! My name is Merry Anne, and I am the Broker Associate of Premier Property Group. I began my real estate career in 2006, after having been an area 1st Grade and Preschool teacher for 5 years. I b....

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