The Millennial Home Buyer’s Guide: Tips for Entering the Housing Market
Millennials are dominating housing markets nationwide, with many reaching the point in their life where they’re ready to settle down and invest in a home. However, the current housing market presents challenges different from those of previous generations, and millennial home buyers have had to adapt their finances and buying timelines to navigate local real estate.
At Mark Spain Real Estate, we know that buying a home is a massive milestone for millennial buyers. That’s why we offer comprehensive real estate services to help you navigate the current market! From financing tips to mortgage advice, our resources will help you progress toward your real estate goals. Below, our experts have compiled a Millennial Home Buyer’s Guide for those looking to enter the housing market.
The Millennial Home Buyer’s Guide: Tips for Entering the Housing Market
Be Open-Minded with Location
Location and home prices are directly correlated in today’s housing market. So, if you’re looking to keep a tight budget, you may have to expand your horizons regarding where to live. Generally, major metropolitan areas tend to be more expensive than more remote areas. This holds especially true regarding coastal metropolises, which is why many millennials are gravitating toward lower-cost, landlocked, Midwestern cities. 
We don’t want to discourage you if your heart is set on living in a big city or by the beach. However, we just want to make sure you know what to expect! You could find the home of your dreams at a much more affordable rate in a more low-key place. Not to mention, these types of areas generally present a lot of market potential, which means your home equity will likely skyrocket with time!
Save Up for a Down Payment
If you’ve done any research on buying a home, you likely know the importance of a down payment. In this current market, you’ll want to maximize your down payment to increase your chances of a lower monthly mortgage payment and a better interest rate. Down payments can range from 3.5% to 20% of a home’s purchase price. Our advice is to lean toward the higher end of that scale as much as you can, as this will allow for a more manageable mortgage payoff. Though you might have to hold off on your home purchase to save up, it’s well worth it in the long run.
Fix Your Credit Score
One of our top financing tips for first-time home buyers is to monitor your credit. Your credit score affects your eligibility for loan options and your monthly mortgage and insurance payments. Ultimately, the higher your credit score, the better the interest rate on your mortgage. So, before applying for a mortgage loan, access your credit reports to determine your standing. If your score is lower than you’d like, spend some time amending your credit by paying your monthly bills on time, keeping your balance as low as possible, and steering away from closing credit cards or opening new accounts. Taking these steps will help your score over time and get you in a better position to apply for a mortgage loan.
Get Preapproved for a Mortgage
Getting preapproved for a mortgage is an excellent route for millennial home buyers. Doing so will save a lot of time in the home-buying process and keep buyers more informed of their affordability. Once you’ve received pre-approval from your lender, you’ll know exactly what price range to stick within when you shop. Additionally, having mortgage pre-approval will show sellers that you’re serious about buying a home. As a result, sellers will take your offers more seriously and potentially weigh them higher against other competing offers.
Hire a Real Estate Agent
If there’s anything you need to know as a first-time millennial home buyer, it’s that you need to hire a real estate agent. Finding a real estate professional who’s well-versed in the market will make your house hunt eons easier. 
A buyer’s agent will help you throughout every step of the home-buying process, from finding homes for sale in your price range to setting up home showings and extending official offers. Your agent can also set you up with other industry professionals, like mortgage lenders or financial planners, who can help with different aspects of the home-buying process.
Buy a Home with Mark Spain Real Estate
Are you a millennial wanting to dip your toes in the local housing market? Let us be your right hand! The industry professionals at Mark Spain Real Estate will help you meet your real estate goals hassle-free! When you work with us, expect unparalleled customer satisfaction and a seamless home-buying experience!
Check out our Guaranteed Offer Program! Our guaranteed offer participants receive the most competitive all-cash offers in the industry and close in as little as 21 days. Contact our agents today to learn more about our Guaranteed Offer Program and sell your home hassle-free!
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