Home buying is a lot more prominent among young adults in recent years. Outside of the traditional married couples looking to buy a home, single adults are buying their first homes in their early 20s. Investing early in property is beneficial for your finances since you aren’t typically spending more on a rental property. When renting you often spend more money than if you were paying the mortgage for the same property. Yes, the initial down payment of a home is large, but once that is complete your mortgage payment goes toward your own home. If you’re a Gen Z or young adult looking to buy your first home, read on to learn more about the process and best practices.
Evaluate Your Finances
Looking over your finances is the first step in buying a home. You’ll first need to be preapproved for a mortgage, which should be done before you start your search. Pay attention to rising mortgage rates. Recent data indicates that in 2022, mortgage rates are likely to increase. Determine how much house you can afford with your mortgage company. Your Realtor can then tailor your house search to match your budget. Once you determine your budget, make sure to discuss what you actually want in a house and find the best ways to maximize your funds.
Choose The Right Location
Location is something that you and your Realtor need to determine before you get started on your home search. Find a few areas that meet your needs as a young adult. Do you want to be around other young professionals or families? Are you looking to be in a higher or lower income area? Are you looking for walkability? Do you want a community with amenities? Once this is figured out you can move forward with viewing homes that match this criteria. If you’re considering moving to a new city, there are several lists that rank the top cities to live in as a young adult that you can find online. If you choose to live local to your original area, this may be easier since you can talk to friends and family about what spots are best.
Preparing For The Move
Once you apply for a home and get accepted, it’s time for the big move! This is an exciting time for you and you’ll want to make your move go as smoothly as possible. To make things easy, find a moving company that can help you transfer your things from one place to another or rent a local U-Haul so you won’t have to worry about doing multiple trips with your car. Make sure to pack your items safely so that they don’t break. Once all your belongings are in your new home, you can decorate and organize!
Your first home may not be your forever home but finding one with the right fit is ideal for your first experience. Keep in mind, the earlier you save and manage your finances properly for this big investment, the better spot you’ll be in once the time comes. If you don’t plan on moving in the next few years, buying a home as a young adult, as opposed to renting, is the best financial decision you can make.