Buying A Home In Your 20’s? Top Reasons You Should Consider

Think you can’t be a homeowner in your 20s? You may need to think again. Many young people believe that the deck is stacked against them in today’s economy. Issues like student loan debt and entry-level salaries can often keep young folks from pursuing homeownership. They may think that they need to be more established in their careers and pay down debt first. Depending on your situation, it might actually be possible to finance your first place. It could even make good financial sense. Take a look at these tips for buying a home in your 20s.

Save for a Down Payment

One of the best ways to put yourself in a strong position to qualify for a home loan is to have a sizable down payment. Experts often suggest having at least 20% down. This is a worthwhile goal, but it could be possible to get a loan with less upfront. If you can come up with 20%, you won’t be required to have private mortgage insurance, which can raise your monthly mortgage payments. There are down payment assistance payments that can provide low-cost loans, tax credits, or grants if you don’t have substantial savings. Some young people can even get help from their families to cover the cost.

Know Your Credit Score

When buying a home in Dallas, it’s wise to know your credit score in advance. This rating lets financial institutions know how likely you are to uphold your mortgage obligation. It lists your credit history and how timely you’ve made payments over time. Young people may have lower scores due to having a shorter credit history. You’ll want to get a free copy of your credit report to determine your score and to inspect it for any errors. Banks prefer a score of at least 660. You may want to work on increasing yours if it’s on the lower end. It’s also possible for you to find a credit-worthy co-signer to help you out.

Look for a Starter Home

Because you’re just starting out, you may not be able to afford your dream home. Chances are, you can still find a starter home you can enjoy for several years while you work toward your career and personal goals. You may qualify for a shorter-term loan with lower interest if you look for a more affordable home. This can be quite beneficial and help you toward creating a solid foundation for purchasing your next home. There are many homes for sale in Dallas that could serve as the perfect starter home on your journey. Plus, buying a less expensive home gives you a cushion so you can more easily handle any necessary repairs in the future.

Keep these home buying tips in mind as you navigate this process. While it may be a challenge in some ways, it is possible for you to find a great home in your 20s that you’ll enjoy living in and that can also serve as a solid financial investment for your future.