Many people in their 20s are constantly discouraged from buying a home. They are told that it is a waste of an investment, that they are better off renting, or that they should wait until they are more financially stable. While there are some situations in which a person in their 20s shouldn’t make the move to become a homeowner, we believe that by following this plan, you can be a homeowner in hardly any time at all.
Establish Good Credit
The second you start thinking about buying a home, start establishing a good line of credit to help you get approved for a mortgage loan. An easy way to establish credit is by opening up a credit account with a small limit and pay it off every month. If you do have credit already, make sure you continue to pay everything on time and check up on your credit score to make sure it is where it needs to be for loan approval.
Get Pre-Approved For a Mortgage
Before you start looking around at homes, you need to know how much you can afford––or rather, what loan amount you can afford to make payments on. After a few months of building up your credit score, you can go to either your personal bank or to a home lender to get pre-approved for a mortgage. This pre-approval will simply tell you how big of a loan you can get, not should get, so don’t get too excited when you see a big number.