College students are beginning to realize as they approach graduation that they won’t be living with their parents for much longer. This is the point in a young adult’s life where the real world translates to a shocking reality. Thinking about a future also means prioritizing an important necessity in life… shelter. What better way to begin a new chapter as a young adult, than to begin investing in buying a home?
Of course, there are two options to consider when purchasing a home; one can buy or rent. However, don’t be fooled by one of these options. Buying will predominantly make a difference after a long period of time. Searching for your dream home may be a stressful process, but it’s important to keep in mind the key factors that will ultimately lead to benefits as a client in the long term.
Buying is better than renting because you will be investing in your future and family. Not only will you have a place to call home, but you will have the security that a home provides as an asset. Accompanying the idea that an asset holds value, buying a home will scratch the fact that you’ll be helping your landlord pay his or her mortgage! One common misconception is that house hunters are hesitant to buy because they are unsure if they will get pre-qualified for their potiential home due to financial history. Nonetheless, there are some cases where clients may be surprised to see how much they actually qualify for, which is why it’s important to keep options open by taking this first step.
As landlords increase rent year after year, tenants may find themselves paying hundreds of dollars more compared to their first year renting. The outcome of this trend makes it harder for tenants to save up. Essentially, it defeats the purpose of renting because individuals should be able to save money to eventually purchase the home of their dreams. Buying a home is a decision many young adults will be encountering at one point in their lives. With that in mind, it is key to be financially informed by actively communicating with your trusted realtor and lender to visualize the next steps that follow your future investment.
Below are some helpful tips that will ensure a successful home purchase:
- Contact a real estate professional: A real estate agent will work with you to guide you through your transaction.
- Building credit: Building credit as soon as possible will give you the opportunity to strengthen your credit score when bills are paid on time.
- Getting prequalified: This will allow you to have a platform that will match what you can buy.
- Saving money: Preparing to buy a home is a serious financial commitment. Saving money is always important to keep up with your home payments and other finances.
- Realizing your wants and needs: It’s key to understand that sometimes our wants don’t match our needs. With that said, being realistic is essential. Keep in mind that one must not over or underestimate the qualities of a future home.
Information Courtesy of:
Victoria Abreu, Real Estate Professional