Advertising
Advertising

7 Mistakes Millennials Make When Purchasing A Home

7 Mistakes Millennials Make When Purchasing A Home

Millennials – they’re the generation between 18 and 35; the new young professionals; the recent graduates, and they’re also coming into the housing market in droves. Usually, they’re also first-time homebuyers, which means that they have the potential to make mistakes in the home-purchasing process.

Here are the top seven mistakes millennials make when they purchase a new home. Whether you consider yourself part of the generation or you’re just looking to ensure your home search goes as smoothly as possible, these tips should help any potential homebuyer.

Mistake #1: Not Getting Pre-Approved

Buying a home should never start with searching for listings online. If you’re serious about buying, start by meeting with a lender. Although that seems backwards to many first-time homebuyers (“Why would I talk to someone about getting money for a home I haven’t found yet?!”) it’s going to help you in the long run.

When you get pre-approved for a mortgage, it means you have met with a lender and showed them your credit report, debt, income, and assets in order to provide a picture of your finances. With that information, they will draft a pre-approval letter – something that tells you how much money you’re potentially qualified for, but isn’t a guarantee of money. Realtors look for a pre-approval letter when working with you because it shows you’ve done your homework and you know your price range. Sellers expect a pre-approval letter with every offer because they know there’s a better chance of you actually getting the mortgage to buy the home.

Advertising

Mistake #2: Not Hiring A Realtor

In the age where you can buy virtually anything online, many millennials believe that they can purchase a home through an online listing service. They look at Zillow, Redfin, and Trulia, find the perfect home, and contact the listing agent.

Let’s stop there. This isn’t to say that looking online isn’t a great idea to see what kinds of homes are in your price range. In fact, it’s an excellent way to be prepared to look for the type of home that’s in your budget, including size and location. However, if you think you can do all of your home shopping by yourself through the internet, think again.

When shopping for homes on online listing services, you’re not really getting the full picture or price. The home might have smells, sounds, or sights that you’re not seeing while looking at the photos on the listing. Not only that, if you’re interested in a home and reach out to the listing agent, they’re not going to have your best interests at heart. They’re legally bound to the seller, so you may not get the best deal. That’s why it’s extremely important to first talk to a mortgage lender to see how much you could afford, and then work with a realtor who can help you avoid paying extravagant amounts of money and walk you through different options of homes that are within your price range.

Mistake #3: Buying More House Than You Can Afford

While looking online for a home, another mistake millennials make is looking at the estimated mortgage payment and thinking, “Hey, I can afford that!”

Advertising

Many times, the monthly mortgage price on the listing doesn’t account for insurance, taxes, HOA fees, Personal Mortgage Insurance if your down payment is less than 20%, or other utilities and maintenance costs. Purchasing a home costs much more than the dollar amount listed there – it’s expensive and if you end up buying more house than you can afford, you risk becoming “house poor” quickly. That means you pay more money monthly for a house than you can reasonably afford.

Many mortgage lenders will pre-approve you for a mortgage that’s much more than you actually could afford on a month-to-month basis. You can’t rely on them to provide you with an accurate amount of money that you’ll be spending each month on your home. You have to do that on your own. Look at how much money you spend on food and transportation. Then, look at how much you’d be spending on insurance, taxes, closing costs, and maintenance. Add a little bit for savings, just in case, and you have a better picture of your budget each month. If you can afford everything that goes into a home, you’re set to buy. If not, you may need to start looking at homes in a lower price range.

Mistake #4: Not Shopping For A Mortgage

Once you find a home, make an offer, and start the closing process, you need to shop around for a mortgage. Many first-time homebuyers assume that they have to go with the lender that provided them their pre-approval letter. Not so! You can shop around for the best interest rates and terms that fit with you and your budget. In fact, not shopping around for a mortgage can end up costing you tens of thousands of dollars in interest.

Mistake #5: Not Attending A Home Inspection

This is one of the biggest mistakes you can make when purchasing a home. If there’s one thing you take away from this article, let it be this: attend the home inspection. Do not let your realtor go without you to look over the inspection. Do not send your mother or brother or second cousin on the home inspection. Take off work and walk through the home with the home inspector. In fact, make sure you’re involved with the entire process, including hiring your own personally vetted inspector (or two or three, depending on the first report), walking through the home with the inspector, asking them questions about the state of the home, and finally reading the inspection report.

Advertising

Why is this such a sticking point? A home’s value isn’t just about the property it sits on – it’s also about the state of the appliances, systems, and foundation that makes up the home. If the roof is failing, you’re going to end up spending major amounts of money on it sooner rather than later. If the furnace has cracks in the heat exchanger, you’re going to have to shell out a lot of money to replace that. You need to be informed as to just what you’re getting yourself into when you purchase a home; what costs you can expect in the future and what parts of the home need to be repaired or replaced by the seller (or the price reduced) before you go through with a sale.

As a side-note, if your realtor tells you a home warranty will cover most of the problems in the home inspection, they are misinformed. Most home warranty companies will not repair or replace broken-down systems that were noted as failing in a home inspection. If there’s something wrong, get it fixed before you buy!

Mistake #6: Not Getting A Home Warranty

That being said, you’re not going to ever find a home in absolute perfect condition, especially if it’s not a newly constructed house. Things wear out and break down. Make sure to ask for a home warranty during closing. Although it isn’t going to cover everything, it can provide major savings for new homeowners when something fails from normal wear and tear, and it will. Some home warranties cover for lack of maintenance, rust, corrosion or sediment in water heaters – all things that might not be found within a home inspection but can cause systems and appliances to fail. This is when you want a home warranty – you don’t have to shell out thousands of dollars to replace something when the seller didn’t maintain the system properly. It’s a nice fail-safe.

Mistake #7: Not Factoring In Resale Value

Finally, when you purchase a home, make sure to factor in resale value. Unless you are a millennial who has a lot more money than the rest and can afford to buy your dream home in the first go around, the chances are that you’ll be selling it sooner rather than later. Find something that can build equity (you can get new carpeting, hardwood floors, or granite countertops) and that will also appreciate over time (the neighborhood is up and coming, new shops and restaurants are popping up around it). Ensure that when you buy, the price will go up over time, so you can sell it for a higher profit than the amount you purchased.

Advertising

There you have it, seven mistakes you can now combat as you purchase a home for the first time. Use and share these tips to ensure your home-buying experience goes as smoothly as possible!

Featured photo credit: lenetstan/Shutterstock via shutterstock.com

More by this author

Young first time home buyers make 7 Mistakes Millennials Make When Purchasing A Home Signs That An Online Housing Listing May Be A Scam Home Inspections: Don’t Make These Mistakes How Long Do Your Home’s Systems and Appliances Last? Why You Should Include a Home Warranty in a Selling Offer

Trending in Home

1 10 Small Changes To Make Your House Feel Like A Home 2 30 Awesome DIY Projects that You’ve Never Heard of 3 5 Reasons Why Tidying Your Room Can Change Your Life 4 25 Really Cool Cat Furniture Design Ideas Every Cat Owner Needs 5 Scientists Discover Why You Should Take Off Your Shoes Before Entering Your Home

Read Next

Advertising
Advertising
Advertising

Last Updated on September 18, 2020

7 Simple Rules to Live by to Get in Shape in Two Weeks

7 Simple Rules to Live by to Get in Shape in Two Weeks

Learning how to get in shape and set goals is important if you’re looking to live a healthier lifestyle and get closer to your goal weight. While this does require changes to your daily routine, you’ll find that you are able to look and feel better in only two weeks.

Over the years, I’ve learned a lot about what it takes to get in shape. Although anyone can cover the basics (eat right and exercise), there are some things that I could only learn through trial and error. Let’s cover some of the most important points for how to get in shape in two weeks.

1. Exercise Daily

It is far easier to make exercise a habit if it is a daily one. If you aren’t exercising at all, I recommend starting by exercising a half hour every day. When you only exercise a couple times per week, it is much easier to turn one day off into three days off, a week off, or a month off.

If you are already used to exercising, switching to three or four times a week to fit your schedule may be preferable, but it is a lot harder to maintain a workout program you don’t do every day.

Be careful to not repeat the same exercise routine each day. If you do an intense ab workout one day, try switching it up to general cardio the next. You can also squeeze in a day of light walking to break up the intensity.

Advertising

If you’re a morning person, check out these morning exercises that will start your day off right.

2. Duration Doesn’t Substitute for Intensity

Once you get into the habit of regular exercise, where do you go if you still aren’t reaching your goals? Most people will solve the problem by exercising for longer periods of time, turning forty-minute workouts into two hour stretches. Not only does this drain your time, but it doesn’t work particularly well.

One study shows that “exercising for a whole hour instead of a half does not provide any additional loss in either body weight or fat”[1].

This is great news for both your schedule and your levels of motivation. You’ll likely find it much easier to exercise for 30 minutes a day instead of an hour. In those 30 minutes, do your best to up the intensity to your appropriate edge to get the most out of the time.

3. Acknowledge Your Limits

Many people get frustrated when they plateau in their weight loss or muscle gaining goals as they’re learning how to get in shape. Everyone has an equilibrium and genetic set point where their body wants to remain. This doesn’t mean that you can’t achieve your fitness goals, but don’t be too hard on yourself if you are struggling to lose weight or put on muscle.

Advertising

Acknowledging a set point doesn’t mean giving up, but it does mean realizing the obstacles you face.

Expect to hit a plateau in your own fitness results[2]. When you expect a plateau, you can manage around it so you can continue your progress at a more realistic rate. When expectations meet reality, you can avoid dietary crashes.

4. Eat Healthy, Not Just Food That Looks Healthy

Know what you eat. Don’t fuss over minutia like whether you’re getting enough Omega 3’s or tryptophan, but be aware of the big things. Look at the foods you eat regularly and figure out whether they are healthy or not. Don’t get fooled by the deceptively healthy snacks just pretending to be good for you.

The basic nutritional advice includes:

  • Eat unprocessed foods
  • Eat more veggies
  • Use meat as a side dish, not a main course
  • Eat whole grains, not refined grains[3]

Advertising

Eat whole grains when you want to learn how to get in shape.

    5. Watch Out for Travel

    Don’t let a four-day holiday interfere with your attempts when you’re learning how to get in shape. I don’t mean that you need to follow your diet and exercise plan without any excursion, but when you are in the first few weeks, still forming habits, be careful that a week long break doesn’t terminate your progress.

    This is also true of schedule changes that leave you suddenly busy or make it difficult to exercise. Have a backup plan so you can be consistent, at least for the first month when you are forming habits.

    If travel is on your schedule and can’t be avoided, make an exercise plan before you go[4], and make sure to pack exercise clothes and an exercise mat as motivation to keep you on track.

    6. Start Slow

    Ever start an exercise plan by running ten miles and then puking your guts out? Maybe you aren’t that extreme, but burnout is common early on when learning how to get in shape. You have a lifetime to be healthy, so don’t try to go from couch potato to athletic superstar in a week.

    If you are starting a running regime, for example, run less than you can to start. Starting strength training? Work with less weight than you could theoretically lift. Increasing intensity and pushing yourself can come later when your body becomes comfortable with regular exercise.

    Advertising

    7. Be Careful When Choosing a Workout Partner

    Should you have a workout partner? That depends. Workout partners can help you stay motivated and make exercising more fun. But they can also stop you from reaching your goals.

    My suggestion would be to have a workout partner, but when you start to plateau (either in physical ability, weight loss/gain, or overall health) and you haven’t reached your goals, consider mixing things up a bit.

    If you plateau, you may need to make changes to continue improving. In this case it’s important to talk to your workout partner about the changes you want to make, and if they don’t seem motivated to continue, offer a thirty day break where you both try different activities.

    I notice that guys working out together tend to match strength after a brief adjustment phase. Even if both are trying to improve, something seems to stall improvement once they reach a certain point. I found that I was able to lift as much as 30-50% more after taking a short break from my regular workout partner.

    Final Thoughts

    Learning how to get in shape in as little as two weeks sounds daunting, but if you’re motivated and have the time and energy to devote to it, it’s certainly possible.

    Find an exercise routine that works for you, eat healthy, drink lots of water, and watch as the transformation begins.

    More Tips on Getting in Shape

    Featured photo credit: Alexander Redl via unsplash.com

    Reference

    Read Next