1. Am I ready to be settled?
It is very important for any homebuyer, particularly for the millennials, to ask whether or not they feel ready to settle down and stay in one place for a long-term period. Since most millennials are at the beginning of their career, they don’t have to stay at home forever. It may not be a wise decision to buy a home that you plan to leave after a year or two. If you are the type of person who likes to pick up and move to a new place on a whim, home ownership may not be right for you just yet. Otherwise, consider the next issues.
2. Do I have a steady income?
Regular income is obviously necessary to make a monthly mortgage payment. Truthfully, you probably wouldn’t even be approved for a mortgage without one. So, if you don’t have much of a job history yet, it may not be your time to buy a home. While you’re working to build up your resume, you also can build up other parts of your financial picture, so that you’re fully prepared to apply for a mortgage when the time is right.
3. Have I saved enough money?
Considering you have a stable job and earning a regular income, you need to be ready for some up-front expenses. Some down payments are less, but many buyers still need to bring a considerable down payment to the table before they can purchase a home. Of course, the down payment is not the only money that you person need to bring forward during the home-buying process. There also are inspections, appraisals and titles, just to name a few of the fees associated with the closing process. You will need to have a significant amount of money saved before buying a new home.
4. Is my credit score good enough?
Get familiar with your credit score if you think you’re ready to buy a home. Your credit score is another big part of your financial picture when it comes to buying a home. In college, you likely were offered every opportunity for credit available. Accepting one or two credit card offers and using the cards responsibly may have helped to establish your credit history.
5. What kind of home do I want?
If your job history, finances and credit are in order, you’ve got to ask yourself what style of home is right for you. Here’s where you need to think short-and-long-term. Right now, a high-rise studio apartment in the city may seem like an ideal location for a single millennial buyer. However, if you’re that buyer and you can see yourself with a spouse or family in a few years, renting that perfect pad may be a better option. Make sure you look at the bigger picture before picking the home that’s right for you.