Is It Time To Buy?
With the high demand for homes and low inventory it comes as no surprise that 2015 has been a seller’s market. Making up the largest chunk of home buyers this year (roughly 32%) are Millennials, individuals ranging from age 25 to 34. This may come as somewhat of a shock to many people because Millennials, up until recently, were pegged as the generation that was uninterested in buying homes and more interested in renting. But that is starting to shift. Millennials are starting to view home ownership as a great way to boost their credit and as an investment; they are putting money into DIY remodeling, which in turn adds value to the home. But rather than simply jumping into home ownership, Millennials are planning for this life changing event by taking a few precautions that anybody looking to buy a home should take into consideration:
- Planning for extra costs: Owning a home comes with many responsibilities and at times, unexpected costs. When you own a home and something goes awry there is no landlord to come and fix the issue, which can be stressful if you don’t know how you’re going to pay for the maintenance. That’s why it’s extremely important to have a bit of savings you can delegate to home maintenance when necessary.
- Checking your credit: It’s very important to check the status of your credit on a regular basis, whether you’re looking to own a home or not. It’s a great habit to get into and will ensure that nothing is going on to devalue your credit, which could in turn affect your ability to own a home.
- Planning to put down 20% at closing: Being able to put down a good chunk of money at the time you close on your new home is crucial, in part because many banks actually require you to do so. But putting down 20% also has its benefits; it can act as a buffer to keep your mortgage rates low if the housing market were to drop and thus decrease the value of your home. If you are unable to do so, it is highly advised that hold off on buying a home until you can.
If you or someone you know is interested in buying a home for the first time, or simply looking to move, contact me for more information!