Kim Abbott

Riding Real Estate Agent

  • Home
  • About Me
  • Resources
    • Buyer Info
    • Seller Info
    • Home Appraisal
    • Home Inspection
  • Find a Home
  • Contact

Financial Preparation: Millennials Are Getting Ready To Buy Homes

August 27, 2021 by Kim Abbott

Financial Preparation: Millennials Are Getting Ready To Buy HomesIn the current economy, there are a lot of millennials who are thinking about buying a home; however, the price of homes is rising quickly. It can be challenging for millennials to save the money they need to buy a home. When this is combined with other monthly expenses they have, millennials might be financially unprepared to buy a home.

Finding the right house takes patience and discipline, so millennials need to avoid jumping in unprepared. What do millennials need to do to make sure they are ready for the expenses that come with owning a home?

Be Aware Of How Much Money Is Required

The first thing that millennials need to do is make sure they have enough money saved up. If prospective homeowners do not have enough money saved up, they could be denied financing by a lender. Conventional mortgage lenders will ask for 20 percent down to avoid PMI, but it might be possible for homebuyers to get a home for as little as 3.5 percent down from some lenders. If the home costs $250,000, then 3.5 percent down is going to be $8,750. If prospective homebuyers have less than this saved up, they could be denied a loan.

After saving up enough money for the down payment, homebuyers also need to cover closing costs. This could include the inspection, the appraisal, and any fees that come from the closing attorney. Even if millennials have parents and grandparents to help them, they still need to save up an emergency fund to cover any possible repairs that are needed. It is a solid rule of thumb to save up and move at least three to six months of emergency money in a liquidity fund. If this money is not there, it might be better to wait.

Millennials Should Wait For The Right Time Instead Of Jumping In Unprepared

Even though it is a great investment to own a home, it is better to wait for the right time instead of jumping in unprepared. Millennials need to make sure they have enough money saved up for a down payment. Then, they should have an additional two to five percent of the loan’s value saved up to cover closing costs. Finally, homeowners should also have a liquidity fund with three to six months of living expenses set aside.

 

Filed Under: Real Estate Tagged With: Down Payment, Inspections, Real Estate

Contact Kim


CALL (602) 540-3719
Located in Phoenix, AZ

Connect with Me

Let’s Keep In Touch!

  • This field is for validation purposes and should be left unchanged.

Browse Articles by Category

Recent Articles

  • Pros And Cons Of Installing A Pet Door
  • First Things First, What To Do Upon Moving Into Your New Home
  • Buying Your First Home? Learn These 5 Essential Home Maintenance Skills as Soon as Possible
  • Home Improvement Shortcuts That Can Lead to Disaster — and How to Avoid Them

Equal Housing Opp

Looking For Something?


3333 E Camelback Rd
Suite 150
Phoenix, AZ 85018

Copyright © 2023 · Powered by MySMARTblog

Copyright © 2023 · Genesis Sample Theme on Genesis Framework · WordPress · Log in