In a recent Yahoo Finance article, Jonathan and Drew Scott of HGTV’s “Property Brothers”, were looking to address a huge mistake Millennials are making when it comes to home buying. This mistake is simply just being too anxious to buy a home. Jonathan mentions in the article, “Never be desperate to get into home ownership…because that’s a great way to guarantee you’ll fail.” A major contributor to that unfortunate result, as many would guess, is the student loan and credit card debt many millennials have on their hands. Because of that, it can be tough to save up for a down payment on a home.
As someone who is both a millennial and eager about the prospect of home buying (or at least renting to start), there is no denying how critical it is to take a deeper look into this topic in order to properly prepare. A couple of important elements on which Jonathan put some emphasis, were credit and organization by saying, “You really need to be diligent that your credit is in line and that you’re organized when you get into home ownership.”
When it comes to home buying, as Jonathan said, your credit plays an essential role. For starters, you will likely take out a loan from a lender such as a bank. Your credit history is the determining factor when it comes to what loans for which you will qualify as well as the amount of interest you will pay. Lenders are able to evaluate your credit history by obtaining your credit score. Their purpose for doing this is to get an accurate sense as to how likely you will be able pay back your loan in a fixed amount of time. The bottom line from all of this; the better your credit history, the better your chances of getting a loan.
Having good organization will make just about any endeavor you embark on more successful. Besides your credit score, what are some important element to have order before buying a home? A bankrate.com article; “6 must do’s before buying a home,” there is a common theme that stood out to me. The main idea to take away from this list is to plan ahead. Makes sense, right? This is not something you want to “figure out as you go.” Instead, the article highly suggests building up your savings while keeping things such as down payments and closing cost in mind.
At the end of the day, we all know how important home buying is. Therefore it is essential to take the necessary steps to be properly prepared.
