Millennials: Get a Head Start on Purchasing Your First Home.

Millennials are graduating, entering the workforce, and want something of their own–a home. Purchasing your first home is an exciting rite of passage, but it can be an intimidating process. Thankfully, these five tips will help millennials get a head start on purchasing a first home!

  • Always Be Aware of Your Credit Score: A credit score is necessary to qualify for a loan. Check your credit report using a reliable source. TransUnion, Experian and Equifaxare easily accessible online sources, where you can review your credit report in matter of minutes. Look for any mistakes, unpaid accounts or collection accounts. Begin this process at least six months before purchasing a home.
     
  • Assess Your Financial Standings: It is important to understand your budget. Do you have extra money every month or are you on a tight budget? Start by reading this step-by-step guide to budget planning from The Balance. A first-time home buyer should be aware of their personal monthly cash inflow. With this knowledge, you will ensure you are purchasing a home that fits your budget. It is also important to understand the type of loans that lenders will give you depending on your job. For example, a salesperson with a commission based salary, may have difficulty getting a home loan due to their fluctuating annual income.
     
  • Organize Documents: When purchasing a home, buyers must present documents about their income and taxes. Most mortgage lenders require two recent pay stubs, past two years W2’s, recent tax returns and the past two months of banking statements.
     
  • Qualify Yourself: When looking to purchase a home, you need to calculate a debt-income ratio. This will help identify how much you are able to afford monthly and upfront. Utilize online resources like Long and Foster’s Mortgage Prequalifying tool to estimate your purchasing capability.
     
  • Decide On a Down Payment: It can be difficult to come up with enough money for a reasonable down payment. Buyers should research what first-time buyer assistance programsare available to them when purchasing their first home. These programs differ state by state, so be sure to understand what your state offers. Remember to always ask your mortgage lender question to help you understand the process.

It is important that you do your homework when preparing to buy your first home. Once you’ve found your dream home, it is time to start looking for a professional mover. Interstate Moving & Storage has expert Move Consultants who have the experience to guide you through the moving process. Be sure to check out our other Blog posts for plenty of fantastic moving tips. We will be there to support you from your very first move to your last. You can count on Interstate to deliver a quality move, with our Top Hat® Service Guarantee.

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