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Posted on Wednesday, April 17, 2019 in Banking Information

Following are five tips that can help Millennials on the path to homeownership.

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
Reliance State Bank NMLS ID #552043

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