Everyone says Gen Z is different, right? Well, this is truer than ever in terms of their approach to homeownership. Gen Z are becoming young home owners earlier than their predecessors and increasingly getting in on the real estate game more than ever before. 

Being a first-time home buyer in an ever-changing housing market can be discouraging, especially without an understanding of the home purchasing process. Many Gen Z individuals don’t know where to start to prepare for their purchase or what steps to take once they have found their dream home. Homeownership can seem like a confusing, unattainable feat, something reserved for a later time in life when things are more settled.  

For some, renting may seem the easiest route or the only feasible option during their 20’s. Here’s the problem: no equity will be gained on the property regardless of how much it costs or the amount of time it has been lived in. The home still belongs 100% to either the bank or the landlord, and nothingshows for the money put into it. So, buying is the best way to go in order to invest in your financial future! 

Although the mortgage process can be tricky, Silverton is here to help! We have put together a simple, comprehensive checklist for young homebuyers to get ready to move into their new home and help ensure the smoothest route for a stress-free experience.  

Credit Score Check 

Before perusing houses and becoming a young home owner, it is helpful to check your credit score with an online credit score service. It may also be smart to get a copy of the credit report at a credit report website for a full picture of your credit standing. Credit scores will help determine whether a mortgage company will be able to provide a loan as well as calculating the mortgage interest rate. With a higher credit score, interest rates will likely be lower which will help save money! 

Figuring Out a Budget 

How much are you able to put down for a down payment? This will help determine what price range the home should fall in and give parameters to search. Remember to consider how stable your financial situation is to ensure you will be able to keep up with payments. Once ready to tour homes and get in contact with a real estate agent, it will be vital information for them to find the best options for your budget.  

Finding the Best Home 

After setting a budget, the house hunt can begin! First, it is good to create a checklist of any needs or wants for the home. This will be vital information to narrow down the search. It is best to get in contact with a real estate agent who will compile a list of properties which align closest with the needs and wants on the checklist. After finding an agent with expertise, sending a budget along with preferred square footage or number of bedrooms/bathrooms, neighborhoods/school zones, and other details can send them in the right direction. Remember that some amenities may be unachievable for certain budgets, but an agent can assist in putting together a list of houses that best fulfills all needs. 

Mortgage—Being a Young Home Owner

Once your dream home has been found, the next crucial step is finding a reliable lender. Many prefer working with a reputable local mortgage company due to the more personal touch their mortgage loan originators (MLOs) typically provide. Agent may refer an MLO they know personally. Local MLOs offer the best rates and create a mortgage plan perfectly suited to specific needs.  

If you’re looking to become a young home owner, Silverton’s skillful team of licensed MLOs can help get you into your new home soon! Our lenders are experts in the field who can guide you through the mortgage process with a personable and cheerful attitude! Here at Silverton, we put the customer first and are dedicated to finding our clients the best deal possible to save them time and money while helping them secure their dream home. Find a lender that’s right for you and start your application today!