Cherry Creek Mortgage
Rent vs Buy 01 November 2018

Why to Buy a Home In Your Twenties

Buying a home in your twenties is not the pipedream that many seem to make it out to be. Frankly, it is surprisingly realistic and possible to make homeownership a reality.

To begin, you should initially focus on saving up for a down payment. You may think that it’s necessary for your down payment to be 20%, but that is a misconception as it can be as low as 3% down. If saving 20% is out of reach ,as it is for many, there are some options. You can either apply for down payment assistance, or you can ask for financial assistance in the form of a gift from family members, which is non-taxable. As with any tax advice, always speak to a CPA first. In addition to this, a good credit score is something that is vital when wanting to qualify for a loan, so be sure to keep off any debt and stay knowledgeable on your current credit score.

Once you feel you have the ability to begin the home buying process, you should start low. Don’t expect that your first home is going to be your last. This is an unreal expectation, and it will be much more expensive if you plan on finding your dream home. Following this, you should plan to have an emergency fund. Homes are a costly expense, and a rainy day fund can save quite a bit of stress when you find yourself in a pinch.

Overall, our biggest piece of advice is to budget yourself and begin saving as soon as possible. You will be incredibly grateful for yourself when you own your own home. Contact your loan officer today to make your dream a reality!