Less and less people are buying homes in their twenties. Why is that? Most of the time it is because they think they can’t afford it or they will go broke in the process. One amazing young woman wrote on Elite Daily about how she bought her first house, on her own, when she was 26 years old while making less than $40,000 a year. People are constantly surprised when she tells them that she owns a house already but she did it the right way and passes on all her tips to us.
She says the first thing to know is where you want to live. It is a must to be sure where you want to be and stay for, at least, the foreseeable future (3-5 years). Next you need to shore up your credit and since a lot of 20 somethings have little to no credit, she advises that you get a credit card and start paying it off all the way every month. That will build your credit quickly and make it easier to obtain a mortgage. After you have some credit built-up, get pre-approved for a mortgage. This way you can know how much you can afford before you even start looking.
You will need to save very aggressively for 6 to 12 months in order to cover the down payment and closing costs. You also have the option of doing some serious research on down payment assistance and grant programs. The writer was able to obtain a soft loan of $15,000 to cover her down payment and closing costs.
The last piece of advice she leaves for all 20 somethings thinking about home-buying is to not buy a house they can’t afford. Never forget to factor in the mortgage, taxes, fees, insurance, and maintenance fees.
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