These days, millennials are among the largest population of people wanting to buy houses. They are old enough to make such a big investment and have needs that homeownership can fulfill. But then, many first-time buyers from Gen Y are clueless about a home purchase.
Many millennials already made grave mistakes when buying their first homes. Some went for the cheaper fixer-upper homes that cost too much to improve. Others chose the first mortgage they get approved of.
Some millennials went on house hunting before getting approved for a mortgage. Others went for the mortgage with the lowest down payment only to pay more in the long run. Streamlining the process of buying your first home will make it easier for you to make your home purchase a more manageable experience.
Take a look at these five ways you can streamline your home-buying process:
Aim for Desirable Credit Score
Most first-time homebuyers will need a mortgage for the purchase. If this is your case, then you will want to start by building your credit score. Doing this can help you get a decent mortgage quote and boost your chances of getting approval.
For best results, aim for a 750 credit score. Start paying your dues on time and rehabilitate your credit history. Know that you can get a copy of your credit report for free every four months from different reporting agencies.
If you have any unused cards that have no annual fee, choose to keep them open. Avoid several credit card applications. Also, make sure you repay your debt in collection.
Build More Than Just Your Down Payment Funds
One of the biggest investments you will make is your home’s down payment. Putting at least a 20% down payment can help you land a better mortgage deal. But then, this is not the only cost you need to worry about.
The more professionals involved in your home-buying process, the more funds you need to save up for. The pros that can make home-buying more worth are is a realtor, a home inspector, and a land surveyor. Don’t forget about the other costs associated with the sale and homeownership.
Make Online Research Your Friend
Make sure you already have an idea of what kind of house you want to buy. We are not simply talking about choosing between a single-family home and a multifamily home. Know that you can also buy a property that no one has the liberty of living in just yet.
If a new home is what you are after, then consider looking for home builders that offer affordable house and land packages. You get to pick from ready-made home designs and layouts and still customize parts of your home to better fit your needs. If you are not in a hurry to move in and want to enjoy stamp duty savings, then this can be the perfect choice for you.
Some buyers want a move-in ready home which is why they opt for turnkey constructed houses. This option is for buyers wanting a hassle-free new home they enjoy asap. If you don’t mind the more expensive price tag and want nothing to do with the hard decision-making, then you can opt for turnkey constructed homes instead.
There are also buyers whose plan is to invest in the property of their dreams. If this is something you want and you can wait for the construction, then choose a custom-built house. This s a good choice if you are meticulous about the design and is willing to blow your budget for your new home.
Take Advantage of Real Estate Apps
There now exist multiple types of applications that enable you to accomplish many tasks associated with your home-buying process. The kind of app you can use will depend on what you want to accomplish. Know that such apps are also for real estate professionals and sellers.
For instance, you are currently house hunting. You want to keep tabs and take important notes of every property you visit. You can download an app that will keep photos of the properties, create notes for each property, and automatically geocode locations.
If you are often house hunting on your phone, you can consider a real estate app to view properties for sale in your area. Some apps allow mortgage approvals within the app. Others apps also offer important details like upcoming auctions and inspection times for your saved properties.
Home buying can be a confusing process, especially for first-time buyers. If you are a millennial looking for your first home, know that there are things you can do to make the experience a better one. Streamline the process, know the things you need to avoid, and you can enjoy a more satisfying real estate investment.