Are you a millennial wanting to invest in their first home? Excellent news! A home will give you a sense of stability, experience pride ownership, and finally enjoy the kind of privacy you badly needed.
One would think that now is not the best time to invest in real estate. After all, the whole world is still pandemic-stricken. But according to reports, many millennials are on the move to buy their first homes. They are taking advantage of the fact that many people are selling their second homes for liquidation. Millennials are also leveraging on the low-interest rates offered by mortgage companies.
But before you go house-hunting, there are important real estate lessons you need to keep in mind. You don’t want to end up investing your hard-earned savings just to watch it go all to waste because of a poor decision.
Use Your Love for Tech When Buying a Home
These days, quick online research can help you find the kind of information you need within seconds. From expert real estate tips to houses for sale and local mortgage lenders, you can find it all on the internet. Since most millennials are digital natives, use this to your advantage when buying your first home.
For starters, you can try shopping for mortgage lenders. Don’t settle on a single lender when many local lenders are looking for home buyers like you. Check out the kind of mortgage types they offer, the requirements they need, mortgage rates, etc. Get yourself preapproved for a mortgage and compare the rates they will be giving you. You can also find a reputable real estate agent online that can assist you in looking for houses within your price range.
Did you know that you can now take a tour of the properties you are interested in without leaving the comforts of your home? These days, sellers use 3D virtual tours to give home buyers the chance to check their properties from whenever, wherever. This makes it easier for you to check if the home fits your taste and lower the risk of exposing yourself to the virus.
Take Advantage of First-Time Homeowner Grants
When buying a house, the bigger the down payment you can save, the better. Experts suggest that one put down a 20% down payment to enjoy better mortgage rates and terms. But then, many millennials are struggling to save enough down payment. The good news is, you can check if you can qualify for a first-time homeowner grant so you can finally buy a house with a low-down-payment mortgage.
Different grants have different limits and qualifications. Most of the time, you will need to pay small payments every month. The good news is, they can forgive your remaining balance if you can pay on time and consistently.
You can also use grants to fund your home improvement projects. This is a good idea if your plan to make your home eco-friendly. Green energy grants can assist you to offset the initial costs while others can reduce your monthly costs.
Know the Risk of Buying a Real Estate
Many people are on the market to buy a house but only know the perks that home-buying has in store for them. They often fail to weigh the risk associated with buying real estate. It is not only your investment that you are risking for buying a house.
Most people think all real estate will appreciate over time. This is not always the case. One cannot determine if a real estate will increase or decrease in value just by looking at the house itself. The location, properties around the area, real estate market trends, and other factors can affect a real estate’s value.
If you buy a house with a mortgage, there is always the risk of you not being able to make your monthly payments. There are financial situations beyond your control that can lead to you defaulting on mortgage payments. This can be sudden unemployment, death of your spouse, bankruptcy, or even a divorce. Even natural disasters or water and fire damage can interrupt your ability to pay your mortgage.
Know what you’re putting yourself into for buying a house and prepare yourself mentally, emotionally, and of course, financially. Since you are about to make a huge investment, it is only a must that you take your time in making any decision related to the home purchase. Consider all the pros and cons, do your research, and don’t hesitate to use free resources available on the web. Consider working with the pros so you can have a good support system to help you out on your first home-buying adventure.