First Time Homeowners Checklist for Millennials
For many different reasons, millennials have delayed becoming first-time homeowners. Instead, they’ve focused on growing their careers, taking time to travel, and more often than not — spending money paying back student loans. Slowly but surely, young adults have been ditching their rentals to find their forever homes and now they make up the largest group of buyers in the country.
Unlike previous generations, millennials are faced with a very unique real estate market. With the internet and real estate apps, potential first-time homeowners have more options than ever before. Here are some tips to help you navigate the ins and outs of what’s most important to consider when buying a house so you’re able to begin your new home buying process with confidence.
The Home Buying Experience
As a community that experiences a lot of young homeowners entering the market for the first time, Pecan Square understands what the new generation of buyers wants while also making the home buying process easy. With affordable, customizable homes and the benefits of a master-planned community, first-time homeowners can go through the experience of buying their first home without dropping a single item from their wishlist or taking a huge financial risk.
Buying a home is most likely the biggest purchase someone will make in their lifetime. And while it can be a little scary, millennials can be confident in the decisions they make as first-time homeowners by following these tips for new home buyers.
Most Important Consideration When Buying a House
First-time homeowners need to know and understand their budget. This is the most important consideration when buying a house. Knowing the budget narrows down the homes that can be considered, saves time and effort, and allows for easier comparison of choices. Knowing the budget is only part of the equation, understanding the budget and all of its components is the other.
To understand your budget, first-time homeowners need to bring to light every expense that will go into their home long before they head out to any open house or jump the gun and plan the housewarming party. Homeowner’s insurance, property taxes, and HOA fees are just some of the variables it will take to see the big picture of your budget.
What is budgeted for and what is approved can be different. So, once you have a concrete number around your home buying budget, it’s important to talk to a mortgage professional and get pre-approval. Not only does pre-approval show the seriousness of purchasing a home, it provides a range of practical, affordable homes to review, making the homebuying process easier. In addition, many new home builders offer their own financing options for buyers, so it’s important to do your research.
More Tips for New Home Buyers
Once the home search has started, here are more tips for new home buyers to consider:
- Think long term—unlike renting apartments with an annual lease, homeownership is generally more long term. Think at least a few years ahead and buy a home within the budget that gives you room to plan for a family, adopt a pet, or make home improvements.
- Location – pick the city, town or even neighborhood or community first, then the house. Take into consideration commute time, parks, community amenities, entertainment, shopping, and the overall community.
- Schools – even if there is no immediate plan for kids, this may change. It also helps resale value to buy a home located in a community with exceptional schools.
- Buying new versus old – determine if buying a newer or custom built home is preferred over an older home. Newer homes have more open floor plans and integrate new technology more easily, while older homes may come with vintage charm.
- Personalization – if you would prefer to move in without needing to remodel, then custom-built is a great option. This allows for personalization including finishes, cabinetry fixtures, appliances, and other bells and whistles.
New Homebuyer Checklist
Here is the essential new homebuyer checklist for quick reference:
- Obtain pre-approval
- Determine size and must-haves
- Find the city, town, or neighborhood
- Conduct online research and take advantage of virtual tours
- Hire a real estate agent
- Search for home
- Submit an offer
- Get a home inspection
- Renegotiate as needed
- Obtain homeowners’ insurance
- Move in