Is Buying A Home Really Impossible For Millennials?

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The conventional wisdom of the modern era is that buying a home is basically impossible for a large chunk of people, and especially for Millennials. But is that really the case? Is it really impossible to buy your own home? Or is that just a lie we’ve been told over and over again that we’re starting to believe? Well, there is some truth in the fact that it’s harder for a lot of younger folks to qualify for mortgages, but the reality is that it’s entirely possible for Millennials to buy their own homes. As with anything, buying your own home will require a lot of homework and planning. But, impossible, it is not. Read on for a few tips to get started down the path to homeownership. 

Plan Ahead

First, let’s assume you have already decided on purchasing a home have planned ahead by having saved at least 20% of your expected purchase price, plus additional money for closing costs and emergencies. Skip this step and your dream of homeownership can easily turn into a nightmare when you encounter unexpected expenses without cash on hand to fix them.

But, let’s say you did your homework, saved your money, and have enough set aside to purchase your new home. With that in your financial arsenal, you’ll need to start diving into the particulars of the process. And here they are!

Use The Internet

computer - is buying a home really impossible

Never underestimate what you can accomplish with your own computer.

Never underestimate the power of the Internet. Sites like Realtor, Zillow, Trulia, and the like offer a wealth of information you can leverage for your own home buying journey. These sites are great to see what’s currently available and an awesome resource for looking at comparable homes in your area of choice.

Don’t forget to factor in taxes and school districts into your decision. Even if you never want to have kids, someone who buys your home in the future might feel differently. Buying a home in a poor school district will undoubtedly limit the pool of potential future buyers.

Find The Right Realtor

Don’t just use your newly-licensed realtor friend just because you feel an obligation. It’s important to find the right realtor for you and your personality. An experienced realtor will not only be able to find you the latest properties that fit your criteria, they’ll also be able to negotiate the best deal when it comes to submitting an offer.

Ask around. Talk to family and friends to see who they used in the past and if they have a recommendation. Keep in mind though, regardless of who you use, all realtors make a percentage of the purchase price. Therefore, the higher the purchase price the more commission both the buyer’s agent and the seller’s agent will make. When buying a home, due diligence goes a long way.

Using A Broker

A lot of people aren’t entirely sure what a mortgage broker actually does for a home buyer. In the simplest possible terms, brokers will help you find the best possible mortgage with the lowest interest rate you qualify for.

When I purchased my home I used a mortgage broker to find the best possible mortgage. And I was glad I did. My broker made the process simple and I felt fabulous knowing I wasn’t going to overpay for my mortgage. 

The reality is that brokers don’t make money if they don’t close on a mortgage, so there’s a serious incentive for them to provide you with everything that you need in order to find the best possible deal. 

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Alternatives To Buying Your Own Home

Mad Money Cat - is buying a home really impossible

Mad Money Cat is a homeowner. #prefershisownpad

When Millennials think about buying their own home, it’s entirely possible that they’re not thinking about a family home with a white picket fence. Times they have changed, and the concept of alternative home solutions are all the craze – especially for people trying to live a financially savvy lifestyle.

Check out these alternative home solutions that can also be quite frugal!

Alternative Home Solutions:

  • Condo – Just watch those condo fees
  • Multi-unit home – Live in one unit and rent the others – also known as House Hacking
  • Mobile Home – The original tiny house – savings abound
  • Tiny Home –  High-tech, small homes that can be mobile
  • A Boat – A romantic home solution sure to be a conversation starter
  • RV Living or Van Life – If you love to travel, RVing or #VanLife might be right for you

There it is. So, if you’re a Millennial that thinks it’s impossible to buy your own home, think again. It might not happen as soon as you might like, but things worth having are things worth waiting and working for.

Tell us about your homeownership goals or experience. Have you opted for an alternative living solution? If so, we’d love to hear about it in the comments.

 

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