Everyone says Gen Z is different, right? Well, this is truer than ever in terms of their approach to homeownership. Gen Z is purchasing homes at a younger age than their predecessors and getting in on the real estate game early.
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: you won’t gain any equity on the property regardless of how long you live there or how much rent you pay. The home still belongs 100% to either the bank or the landlord you rent it from, and you have nothing to show for the money you’ve put into it. So, if you’re looking to invest in your future, buying can be the way to go!
The mortgage process can be tricky, but Silverton is here to help! We have put together a simple, comprehensive checklist for the young home buyer to get ready to move into their new home and help ensure the smoothest route for a stress-free experience.
Check Your Credit Score
Before perusing houses, it can be helpful to check your credit score with an online credit score service. You may also want to get a copy of your credit report without scores at a credit report website for a full picture of your credit standing. Your credit score will help determine whether a mortgage company will be able to give you a loan as well as calculating your mortgage interest rate. With a higher credit score, your interest rate will likely be lower and save you money!
Figure Out Your Budget
How much are you able to put down for a down payment? This will help determine what price range your home should fall in and give parameters to your search. Remember to consider how stable your financial situation is to ensure you will be able to keep up with payments. Once you are ready to tour homes and get in contact with a real estate agent, this will be vital information for them to find you the best options for your budget.
Find Your Dream Home
After setting your budget, the house hunt can begin! First, create a checklist of any needs or wants you have for your home. This will be vital information to narrow down your search. Your best bet is to get in contact with a real estate agent who will compile a list of properties which align closest with your checklist. Once you find an agent with expertise in your area, send them your budget along with your preferred square footage or number of bedrooms/bathrooms, neighborhoods/school zones you like, and other needs you have for your new home. Remember that some amenities may be unachievable for your budget, but the agent can help by putting together a list of houses that best fulfill your needs.
Mortgage—You’re a Homeowner!
Once you and your real estate agent have found a home that works for you, the next step is finding a lender. Many prefer working with a reputable local mortgage company due to the more personal touch their mortgage loan originators (MLOs) typically provide. Your agent may refer you to an MLO they know personally. Local MLOs may be able to offer you the best rates and create a mortgage plan that is perfectly suited to your specific needs.
If you’re looking to buy a home, 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, 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!