Waiting for the “Perfect” Home
Millennials buying a home for the first time are up against some hurdles, including the 20% down payment, plus closing costs. With home prices continuing to rise, these hurdles become boulders.
“To play in the market, one must get in the market by buying (and hopefully getting a good deal on) a home that is within their immediate financial striking range,” explains Mia Simon, a Redfin real estate agent in Silicon Valley. “This is difficult for some, as they want the three bedroom/two bathroom home where they can envision raising their children. The problem is that by the time the’ve saved the down payment to afford this house, it has appreciated to the point where it is now unaffordable.” Here are more house hunting and buying mistakes to avoid.
Not Getting Pre-Approved
Millennials are undoubtedly an online-based generation, but that doesn’t mean old school techniques aren’t still valid. While searching for listings online is tempting, your best bet is to meet with a lender to get pre-approved for a mortgage. Showing them your credit report, debt, income and assets will allow them to draft a pre-approval letter to find out how much money you may be qualified for.
In fact, real estate agents look out for these letters to make their job more seamless, while sellers expect such letters as an indicator that you’re serious about buying the home. Be sure you avoid these 12 common mistakes when buying a house.