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If you played with a Tamagotchi or danced to Baby One More Time… then you are a millennial. Like many in our generation, you’ve probably spent a good chunk of your adult life renting. But what if we told you that the dream of owning your own home isn’t as far-fetched as it seems? Yes, despite what you might think, buying your first home is entirely possible, and we’re here to guide you through this exciting transition!
Homeownership begins with understanding your finances. Before you start browsing Zillow or dreaming of kitchen backsplashes, getting real with your numbers is important. This means looking at your income, expenses, and any debt you might have. Generally, your monthly home expenses should not exceed 30% of your gross income. Tools like online mortgage calculators can help determine what you can reasonably afford.
One of the biggest hurdles for millennials when buying a home is saving for the down payment. But don’t let this discourage you! There are numerous strategies to make this more manageable. Consider setting up a separate savings account exclusively for your down payment, and automate your savings so a portion of your paycheck goes directly into this account. Moreover, there are various first-time homebuyer programs and down payment assistance programs that can significantly lessen the burden.
Getting pre-approved for a mortgage sets you on the path to homeownership. It’s proof to sellers that you’re serious and lets you know how much you can afford. At loanDepot, it’s an eight-step process. First, check your credit score since it impacts your loan options and interest rates. Then, tidy up your debt-to-income ratio, showing lenders you can handle a mortgage. Aim to reduce your debts and save for a down payment to skip extra costs. Remember, you’ll need to budget for closing costs and have your documents ready, like proof of income and bank statements. These efforts make your loan application smoother and increase your chances of success.
loanDepot has a dedicated team of local Northern Colorado finance professionals ready to assist you. Their experienced professionals, including skilled loan consultants and area builder account managers, are committed to providing personalized guidance and support. From loan options to the mortgage application process, the loanDepot team ensures you have all the necessary resources at your disposal. With their support, moving from renting to owning becomes a much more attainable and less daunting endeavor.
Now, the fun part is choosing your home! When you begin your search, keep an open mind but have a clear list of non-negotiables. Remember, while it’s important to find a home that checks off most of your boxes, flexibility is key. Start with our Northern Colorado communities!
Closing on your home might seem daunting, but it can be a smooth process with the right team. This includes a trustworthy real estate agent and a knowledgeable mortgage team. From negotiating the process to signing the final documents, these professionals will help guide you every step of the way.
For Millennials, the path from renting to owning doesn’t have to be a dream; it could be a reality. With the right preparation, knowledge, and team, you can be an owner too. And remember, the journey to buying your first home is as much about the adventure as the destination. Happy house hunting!