5 HOME BUYING TIPS FOR MILLENNIALS
Following are five tips that can help Millennials on the path to homeownership.
- Start saving. The sooner you start saving, the better position you will be in when you are ready to buy a home. Consider opening a first-time homebuyer savings account that will allow you to claim a credit on your state income taxes.
- Reduce your debt. Pay down as much of your existing debt as possible. Doing so may make budgeting for a future mortgage payment less stressful. It will also strengthen your credit history, allowing you to qualify for a better interest rate when you're ready to buy.
- Get pre-qualified for a home loan. Once you're ready to enter the housing market, look into your financing options to start the process. By getting pre-qualified, you will have a better understanding of what type of home you can afford.
- Calculate additional expenses. As you budget for your mortgage payment, it's crucial to consider other expenses that come with buying a house, including property taxes, insurance and closing costs.
- Stick to your budget. Once you know what you can afford, stick to it. Don't look at homes way outside your budget. And if a seller is unwilling to meet you at a price that you are comfortable with, walk away.
Tips are provided by the Iowa Bankers Association.
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