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How to prepare to buy a home

 

Purchasing a house is one of the single biggest financial investments Millennials will make in their lives. It can be a complicated and intimidating process, but with the right preparation and research, buying a home can be manageable and less stressful. According to the 2017 annual Profile of Home Buyers and Sellers, the largest share of home buyers (34 percent) are Millennials at 36 years old and younger. The most important part of buying a home is deciding ahead of time what you can afford and to take the steps to prepare for a long-term financial commitment.

ACCC offers necessary advice for Millennial homebuyers. 

  1. Check & improve credit – It is important to check your credit report with all three credit reporting agencies to ensure there is no erroneous information on individual credit reports. Consumers should focus on making their credit score as strong as possible. With a score of 760 or higher, consumers can qualify for the lowest interest rates. Anything below can still qualify, but the interest rates will be higher.
  2. Take a pre-purchase homebuyer education class – Homebuyer education classes save consumers time and stress. Offered both online and in person, these classes provide a thorough background on home buying advice and information, including different types of loans that may be available.
  3. Know your budget – Take a look at your budget to see if there is anything you can live without or cut back on. It is important that Millennials know their limits when it comes to purchasing a house. Be sure to factor in all the expenses that come with owning a home, such as property taxes, insurance, potential HOA fees, maintenance and other expenses.
  4. Manage Debt – Pay down any outstanding debt including credit cards or current loans, such as a car loan. Paying down current debt can help prepare consumers for the financial responsibility they are about to endure with homeownership.
  5. Save – The more money Millennials are able to put down towards their mortgage loan, the more attractive they are to lenders. If a consumer is able to put down more than 20 percent, they will not have to pay private mortgage insurance.

 

 American Consumer Credit Counseling (ACCC) provides credit counseling, financial education and debt relief options for individuals and families with too much credit card debt or unsecured personal debt. Our certified credit counselors have helped thousands of consumers find credit card debt relief by learning how to reduce debt and how to get out of credit card debt. Our debt assistance services and debt management plans allow consumers to consolidate credit card bills into a single payment, and provide help with negotiating credit card debt in order to lower interest rates and finance charges, to ultimately eliminate debt through a credit card payoff plan.

American Consumer Credit Counseling - Consolidate Debts - Better Business Bureau American Consumer Credit Counseling - Consolidate Debts - Mass Housing Approved National Industry Standards for Homeownership Education and Counseling American Consumer Credit Counseling - Consolidate Debts  - Council on Accreditation American Consumer Credit Counseling - Consolidate Debts  - NFCC Member

Video: How to prepare to buy a home

Purchasing a house is one of the single biggest financial investments Millennials will make in their lives. It can be a complicated and intimidating process, but with the right preparation and research, buying a home can be manageable and less stressful. According to the 2017 annual Profile of Home Buyers and Sellers, the largest share of home buyers (34 percent) are Millennials at 36 years old and younger. The most important part of buying a home is deciding ahead of time what you can afford and to take the steps to prepare for a long-term financial commitment. ACCC offers necessary advice for Millennial homebuyers. 1. Check & improve credit – It is important to check your credit report with all three credit reporting agencies to ensure there is no erroneous information on individual credit reports. Consumers should focus on making their credit score as strong as possible. With a score of 760 or higher, consumers can qualify for the lowest interest rates. Anything below can still qualify, but the interest rates will be higher. 2. Take a pre-purchase homebuyer education class – Homebuyer education classes save consumers time and stress. Offered both online and in person, these classes provide a thorough background on home buying advice and information, including different types of loans that may be available. 3. Know your budget – Take a look at your budget to see if there is anything you can live without or cut back on. It is important that Millennials know their limits when it comes to purchasing a house. Be sure to factor in all the expenses that come with owning a home, such as property taxes, insurance, potential HOA fees, maintenance and other expenses. 4. Manage Debt – Pay down any outstanding debt including credit cards or current loans, such as a car loan. Paying down current debt can help prepare consumers for the financial responsibility they are about to endure with homeownership. Save – The more money Millennials are able to put down towards their mortgage loan, the more attractive they are to lenders. If a consumer is able to put down more than 20 percent, they will not have to pay private mortgage insurance.