5 Tips For Home-Buying In Your 20’s
When my husband and I bought our first home, we were clueless as to what the whole process entailed. Purchasing our first home seemed like such a grueling thing to do (and it was) BUT I wish I knew these 5 things before beginning our home buying journey.
1. Shop Your Rate/Lender
My husband and I chose the VA home loan route but if you’re purchasing a home using a traditional FHA, it’s super important to make sure you’re getting the best deal. We didn’t know shopping your rate was a “thing” until we were in the process of buying our 2nd home. It takes some extra work but most of the time (especially if you’re a first time buyer), you’ll end up getting a better rate somewhere else than the first place that approved you.
2. Put Down As Little As Possible
A common misconception is that you’re required to put at least 10% down on a home. This is simply not true and in most cases can even be avoided depending on your loan type.
Will you be living in this home for over 10 years?
Are you planning on making it an investment property at some point?
Both of these questions are crucial in determining if putting more money down on a property is worth it. If you plan on keeping your new home for years to come, it may be a good idea to invest. It not, consider a lesser amount.
3. Get Closing Costs Included In Your Loan
Not necessarily needed in every scenario but good information to know! We rolled our closing costs into our loan which added about $6,000 to our total cost. With our interest rate, the cost of this overtime is low. Weigh out your options with your loan officer and see if including closing costs in a deal is the right path for you.
4. Don’t Be Afraid Of Renovations
Painting the walls, adding in new flooring, or even updating appliances can be small renovations you can make after move-in. Don’t be afraid of a small fixer upper. You’ll spend less money on your loan and more on customizations. I wish we would have been more open to small projects like these during our first buy!
5. Hire A Good Inspector
The best tip I can give to a first time buyer is to hire a good inspector! With our first purchase, a team of 2 inspectors arrived and took 4 hours to complete the walk through. I can’t say the same with our 2nd home.
Our inspection with our 2nd home lasted only about an hour and after move in, we realized there were some things he missed. Such as, electrical problems and window issues. These types of problems are easy to fix BUT anything that’s found in an inspection is fair game for negotiation. It’s extremely important to have as much information on the home as possible - therefore getting the BEST deal possible.
