You may feel like buying your own home is out of reach. After all, you’re just graduating from college with an entry-level salary trying to manage student loan debt along with other bills. Is it even possible to buy a house in this stage of life?
The good news is, while it seems challenging, many others have done it. In fact, statistics show that millennials are currently the biggest group of homebuyers in the country. Young millennials are included in this statistic! Most of them are purchasing their home solo before they even consider getting married or having kids.
If you are looking to buy a house in or near Lexington, South Carolina, let the Lafayette Team with EXP Realty help. We specialize in working with first-time homebuyers and sellers.
In this article, we’ll explain how to buy a house in your 20s.
What’s the Best Age to Buy a House?
First of all, it’s important to note that there’s no “right” age to buy a house. However, it’s important to note that buying a house is a major commitment. This decision is one that you’ll have to live with for several years to several decades of your life.
What are the Minimum Requirements to Buy a House?
Many homebuyers believe that buying a home is difficult- but as long as you meet the minimum requirements, it’s not as hard as you might think. The guidelines regarding credit, income, down payment, and savings are the same no matter what your age.
That being said, requirements vary between lenders and loan programs. Therefore, you may want to check your eligibility with several companies.
Things to Consider When Buying a House in Your 20s
There are several things you’ll want to keep in mind when you buy a house, including:
Are you well-established in your job? Is there a chance that you may be asked to relocate to another area? You’ll want to stay in the home long enough to break even. You should only buy a house if you know that you’ll be there for at least 3 years.
Think about how much you make and how much of your take-home income you could afford to spend on your housing. You may want to find a mortgage calculator to determine how much your mortgage will cost. You’ll need to make sure that you can afford that, as well as the cost of maintenance/repairs, food, utilities, car payment, phone, and more.
Do you plan to get married and/or have kids or pets in the future? Will you be able to afford a home that will accommodate those? You’ll need to make sure that the home you buy aligns with your future plans.
Think about what interest rates are at the moment. You may find that it’s better to wait until rates drop to make your payments more affordable. If you’re not sure about this, talk to a reputable loan officer and shop around. Rates can vary from one lender to another.
Think about the local market conditions- are prices affordable and values rising? In addition to providing a place for you to live, your home should be a good investment. You want your home to increase in value, which can increase your future profits. If you’re not sure whether or not a home is a good investment, talk to a realtor for advice.
In addition to the above, you must think about the responsibility factor. When you are a homeowner, you are responsible for doing or paying for repairs. You must make sure that you’re ready to take on those responsibilities and that you have an emergency fund for these expenses.
Let The Lafayette Team Help You Find Your First Home
Buying a home in your 20s can be challenging but it’s possible. Simply keep these things in mind to help you buy a home. If you are a millennial that is looking to buy a home, let the Lafayette Team with EXP Realty help. We work with first-time homebuyers and sellers to find their dream home.