You may have heard the millennials are taking their sweet time before settling down to purchase a home. Some studies say that buying a home before the age of 35 can prepare you for retirement at 65, but that doesn’t mean that people are doing it. When the time comes to make that purchase, millennials in Sacramento, CA are making sure that they’re ready to do it right.
Making A Difference In The Mortgage
Housing experts have noted that homeownership of adults between the ages of 18 to 34 is lower today than in previous generations. Surveys show that those who purchased a home before age 25 had an average of only $10,000 left to pay off by age 60. Many who bought homes in their early 30s had about $50,000 left on their mortgage, though they typically purchased more expensive homes.
Despite waiting longer to buy, millennials are still prioritizing homeownership at a high rate. Those who are ready to make the transition from renter to into homeowner can take the following steps to make it an easy one.
How To Come Out On Top
Define your goals. Determine why you’re buying a home, and what kind of home you’re looking for. Homeownership in Sacramento, CA is a big step. Education and preparation can go a long way towards making that step and easy one to take. Look over all options and define your goals along the way.
Know your costs. It’s not just a matter of finding a house for a certain price. There are many costs that come with owning a house that most people don’t think about. Keep in mind and plan for the following:
- - Down payments
- - Buyers closing costs
- - Moving costs
- - Move-in costs
- - Maintenance costs
Check current mortgage rates. Buying a home might seem like a lot to spend in the moment, but it can cost you even more to wait. Mortgage interest rates can rise at any time, and no one can predict the pattern. Waiting until they go up can mean bigger mortgage payments down the road.
Look at the details. Take the time to walk through the house and peek behind the curtains. Going through the details with a fine-tooth comb can help you avoid potential issues in the future. A home might look beautiful from the outside, but be rotting away from the inside. Cross a house off the list if you see warning signs of termites, like hollow-sounding wood, swarms, and cracked or distorted paint.
Now Is The Time To Prequalify
Now is a good time for millennials to buy. The best way to begin the search for a new home is to get prequalified. It’s quick, it’s easy, and it provides a base to work with. Your current financial situation and credit history will determine how much you qualify for. Once the perfect house in Sacramento, CA is found, it can become yours within 10 short days. Home sweet home.