Buying your first house while you’re in your 20’s is an incredibly exciting experience. It can also be a fantastic and lucrative long-term investment opportunity. It’s important to keep in mind, however, that there are some potential – and very real – pitfalls to avoid. Young homebuyers are often unaware of these pitfalls, and this can lead to long-term financial hardship.
All of this can sound scary, but it doesn’t need to be. Yes, there are some hazards and risks associated with buying your first house. But at the end of the day, and above all else, it’s an opportunity that you should be excited for. In order to avoid the hazards and navigate the homebuying process successfully, it’s essential to learn from the experts.
With that in mind, this article will highlight some tips for anyone who’s buying their first house in their 20’s.
Common Homebuying Mistakes to Avoid
But before we get to that, let’s take a look at some of the aforementioned hazards of the homebuying process.
Here are three pitfalls that first-time homebuyers commonly fall into:
- Shopping for a home before you’ve been preapproved for a mortgage loan.
- Requesting a mortgage quote from less than three lenders.
- Failing to take advantage of first-time homebuyer programs and loans that are available in your area.
- Spending all of your funds on a down payment and not saving enough for closing costs.
Four Ways to Simplify the Process of Buying Your First House
Okay – now that we understand some of the mistakes to avoid, let’s now break down some tips for success.
Here are four tips for anyone who’s interested in buying their first house in their 20’s:
- Make sure you receive a prequalification letter and a preapproval letter.
- Treat the maintenance of your healthy credit score as a top priority.
- Differentiate your “need to haves” from your “would be nice to haves.” In other words, make sure you know what you’ll be willing to compromise on, and what’s going to be non-negotiable.
- Start saving right now! There are a huge number of unexpected costs in the typical homebuying process. The best way to prepare for them all is to start contributing to your savings in the here and now.
Start Shopping for Your First House Today!
At Mortgage Solutions Financial, we’re removing the friction from the homebuying and loan application processes. To learn more about our services or to start shopping for your first house, please contact us today!