Millennials and older Gen Z’ers are looking forward to the day where they no longer have roommates or even landlords. To make that day arrive sooner, Raleigh Cary Realty has the following suggestions to help the next generations become homeowners. When thinking of owning a house, one must have a competitive down payment, good credit to get a mortgage loan, and pre-approval by a bank.
Suggestions for saving for a house when you’re young/newly graduated:
- Talk to a mortgage lender sooner rather than later: Everyone is in a different situation financially and one of the best ways to see where you are at and what to do, is talk to a mortgage lender first. Raleigh Cary Realty works with a lot of experienced & great lenders who will let you know the best place for you to start.
- Improve one’s credit score: Paying off credit card statements on time helps to decrease debt and builds credit. Some new grads may have to have a family member co-sign on their credit card in order to build credit.
- Budget: While staying at home, many people are realizing how much money goes to small, quick purchases made throughout the day. These begin to quickly add up. Setting up an auto-deposit into a savings account for every paycheck helps to build up one’s savings.
- Create an investment portfolio: Create an investment portfolio with a broker. Decide if part of your savings can be applied to an investment portfolio. Starting small and building up a portfolio is helpful to have enough money for a down payment on a house when cashing out stocks.
- Pay off student loans: Depending on the type of loan and the interest accrual, creating a payment plan and schedule that best fits one’s budget is ideal. Whether it is a 10-year plan or longer, making the payments month to month helps to decrease debt. Missing a student loan payment can hurt one’s credit score.
Having one’s finances in order and being fully aware of where the money is going helps to create a budget, savings, and investment. Even though this takes time, young people and new grads should start now if their goal is to be a homeowner one day. Raleigh Cary Realty is here to help with the home buying process. Contact us today.