The millennial generation or the so-called Generation Y is often branded as the largest group of soon to be homebuyers. According to sellingwarnerrobins, "there are nearly 43 million prospective buyers in the 25-34 age range. When only 12 percent of the greater U.S. population plans to buy in 2015, this confidence among millennial makes them the prime buying demographic." And if you are one of these millennials, then here below are some useful tips, as also discussed by sellingwarnerrobins, for home buying.
Affordable Markets
Millennials wanting to buy their first home should take in mind 'the concept that the higher the inventory the higher their negotiating powers' would be when it comes to home buying. This simply translates into an idea that millennials may shop for a property in affordable locations. The idea is to avoid bidding wars while shopping in a less dense area where competitors would not be swarming like bees. Aside from the notion of competitors, sellers could not actually use such event as leverage for an inflated home price. Sellingwarnerrobins suggests that more affordable locations are to be found in:
Akron, OH (where 90 percent of homes for sale are considered affordable)
Buffalo, NY (86 percent)
St. Louis, MO (85 percent)
Des Moines, IA (85 percent)
Cincinnati, OH (82 percent)
Pittsburgh, PA (82 percent)
Pay Down Debt
It's an obvious advice that you should pay all of your debts or at least lower it down in preparation for a home loan. By doing so, favorable terms could actually be achieved and chances of getting low loan interest would likely happen. It's good to note that most legit lenders could be determine whether you are financially capable of paying through what we call buyers' debt-to-income (DTI) ratios. That's why as much as possible lower debts or better yet pay them all.
Save a Down Payment
It is necessary to have a cash at hand even though there are types of loan that offers zero money down, for some sellers would be more enticed to accept your offer if you can bring as much cash on the negotiating table as possible. Home sellers are more inclined to stable offers rather than promises.
The ones outlined above are not the only ways through which you may guide yourself in purchasing a home of your own. You may consult property agents or consultants for more detailed planning that will suit your current financial status.
