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This Is How A Millennial Can Buy A Home Before Their 30s

This Is How A Millennial Can Buy A Home Before Their 30s

They say millennials can’t afford a house. They say you have to rent. They say you have to be married to own a home. What they don’t say is, there is another way!

You can buy your own place, even if you’re a debt-burdened millennial and even if you are single. Because 20-somethings are seen as mostly unable to secure a good paying job, the general opinion is they can’t afford to buy a home. Public opinion seems to go with the flow as there are many articles on how millennials are changing the real estate market. While it’s true that many millennials value the laid back, carefree lifestyle that comes with renting, there is a way to own your own home before turning 30. You just have to stick to a set of strong rules and make sure nothing changes your mind. I know this because I’ve seen it. My cousin is lucky enough to have her own place and she’s 5 years younger than I am, earning only $38,000 per year!

1. Figure out what you want

The first step is to figure out what you want. Most millennials are fleeing towards NY or some other high-end city, in the pursuit of better jobs. This is great, but do you really want to live in that city? Would you prefer being closer to home? Or, maybe you’d like to find a whole new place to live.

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Figuring out what you want is an important step in the quest for home ownership, as owning means having to stick to a place for a long period of time, like 5-10 years.

At the same time, make sure the job you have is the job you want. If you’re planning to change careers, put your plans of owning a home on pause until you’ve decided what your perfect job is.

2. Pay attention to your credit

Most millennials have low or no credit score, which makes it difficult to get a mortgage. Before you apply for a mortgage you need to take care of this issue. If you have no credit, open a credit card and set a low limit, then pay it each month to build your score. If you already have a credit card keep the balances below 30% or below the credit limit. This will increase your credit score.

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3. Learn how much you can afford

Getting a mortgage means you’ll have extra expenses and before you take the step you have to be able to afford it. Spend time with an online mortgage calculator and check how different monthly payments affect your interest rate and down payment. Also, research different types of mortgages and loans to make sure you are making the best choice.

When you know how much can you spend and which program is right for you, get your mortgage pre-approved. You can do this online and it will help you secure the mortgage loan.

4. Research down payment assistance and other helpers

There are many great down payment assistance programs out there that can be supportive when buying your first house. However, you need to research them to the core! There will be a lot of paperwork to fill out but in the end, you might walk away with a good amount of money. For example, in Atlanta, you can get around $15,000 in down payment assistance with the right qualifiers.

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Research other options that might help you, such as a reverse mortgage, lowering your PMI in the future or challenging the tax assessment. All these can help you lower your payments in the future, or even right after you purchase the house. The key is to be informed!

5. Start saving for the down payment

The next step is saving as much as possible. My cousin set her initial target at 30% of her already small revenue, then modified it to 25% and managed to stick with the plan, mostly. You will be amazed at how much money we spend on useless things and how much we can save! If you can stack some cash from a side activity like a blog, a skill or a hobby, do it! Save for at least a year before you apply for the mortgage. This money will become your down payment and the more you have, the better.

6. Research the house

Another critical step of buying a house at a young age is researching the building before making the purchase. Visit the house you want multiple times, at different times of the day, attend community meetings, and familiarize yourself with the neighborhood.

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Never buy a house you can’t afford, this will result in failure. Research the taxes on the house you want to buy, along with any fees or liens, and do your calculations before making the final step. Good, in-depth research ensures you won’t end up with an unwanted surprise after the buy.

Don’t aim for the highest limits of your approved mortgage. If you can find a house you love for less money, go for it!

Featured photo credit: Unsplash via unsplash.com

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Last Updated on August 20, 2018

30 Fun Things To Do With Your Friends Without Spending Much

30 Fun Things To Do With Your Friends Without Spending Much

Spending time with friends is, in and of itself, a great way to pass the time without spending a lot of money. But if you and your friends are used to going out to clubs, pubs or eateries together as your way of hanging out, then you can change it up a bit and save some money too.

No matter where you live, there are plenty of places to go and do fun things that don’t cost a lot.

If you are having trouble convincing your friends to do things on the cheap, then be upfront with them. Tell them straight out that you can’t spend that kind of money right now — and don’t let them pay for you either. But here are some great alternatives you can offer.

30 Fun Things To Do With Friends Without Spending Much

1. A potluck dinner party. Host a dinner party and ask everyone to bring a dish to share. If you are not comfortable with cooking, maybe try and learn how to cook a new dish together with your friends.

2. Host a spa day. Give each other manicures. Try out new hairstyles. Make some facial masks or exfoliates using natural, at-home ingredients. Then drink mimosas.

3. Movie marathon. Log into Netflix and watch every episode of “Stranger Things” Or do an ’80s movie marathon, watching “Pretty in Pink,” “The Breakfast Club” and all of our old favorites. Don’t have a Netflix membership? Get the free trial just for the marathon!

4. Pinterest party! You know all of those cool Pinterest crafts you say you’re going to do? Do them. At home one night with friends. Then make up some of those bacon-wrapped whatevers you’ve been dying to try!

5. Go to the park. Pack a picnic. Hang out. Watch people. Play on the swings.

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    6. Have an organization party. Set up a day of each weekend where you go to each of your friends’ houses and help them clean out a closet, a room, a garage, whatever. Serve drinks and food and trade stuff among yourselves.

    7. Hold a yard sale. After all of that cleaning, why not hang out together and make some extra cash too?

    8. Concerts in the park. All summer long, many parks host free concerts. Go with your friends. Hang out, bring a picnic dinner. This is a very relaxing way to chill out on a hot summer night after work.

    9. Volunteer together. Offer to do the yard work for the local senior center or hang out with the kids at the YMCA. After a few hours of volunteering together, you will have new respect for each other and something new to chat about.

    10. Play board games. Drag out the Scrabble or the Yahtzee. You can hang out and play all sorts of games with large groups or small ones. Hold a tournament and compete against each other. Here’re some board games ideas.

    11. Video game tournament. Not into board games? OK. Well, how about a video game tournament? Whether it’s the latest dancing game or “Call of Duty,” play against each other and award prizes (or food) to the winners.

    12. Grab a ball and a bat and go play baseball at the local park. Grab a basketball or a tennis racket. Most parks have courts and fields you can use for free as long as there isn’t an organized event going on.

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    13. Go to the school play. This might cost a little for admission, but it’s a great way to support your community and have a fun time.

    14. Iron Chef night. Bring your friends over and have an Iron Chef night where you cook dinner out of only the items in your pantry. No buying anything!

    15. Go dumpster diving. Yup. I said it. Check out the dumpsters in your area and see what you can find. You might even find dinner! Here are some tips for respectful diving.

      16. Go to yard sales. Take all that money you made at your yard sale and cruise around your town together looking for cool stuff. Maybe you could even fix something up and resell it.

      17. Go fishing.

      18. Go camping.

      19. Find some cool trails around your town and go hiking. Here’re some of the best hiking trails you should try.

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      20. Get out the bikes and bike everywhere for a weekend.

        21. Dig out the old croquet set — or borrow your Mom’s — and play croquet. Do it! Totally fun.

        22. Swap movies and music. Have everyone bring over a box of old movies and CDs they don’t want anymore — or don’t watch anymore. Then swap with abandon.

        23. Go on a walking tour of your town. Most towns or cities have a historic district. Find out if there is a walking tour available. If not, make one up!

        24. Scavenger hunt. Put your friends to the test — yes, this is for grown-ups — to find different things in your city…like a certain bike rack, a vintage sign, that sort of thing. The winner gets a dinner cooked by the losers.

        25. Find out when the free days are at your local museum or zoo. Most have them and they can be great fun to visit with friends.

        26. Hold a quilting bee. No, you don’t have to be fancy — or old — for this. Grab some old T-shirts that you love, old jeans, whatever. Cut them into squares and sew them together. Who knows? Maybe it will become a regular thing?

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        27. Go to Open Mic night. Your town is likely harboring some great talent at an open mic night that has no cover and cheap drinks!

        28. Go to a religious service. Even if you’re not religious, going to a service in an unfamiliar religion can be enlightening and a great way to meet new people.

        29. Find a swimming hole. Head to the old town swimming hole — or find a new one. What a great way to spend a lazy afternoon with friends.

          30. Start a book club, card club (canasta anyone?), sewing club or scrapbooking club. Something you and your friends like. My parents used to belong to a cooking club where once a month all of their friends gathered at one house and the host family cooked a meal from a different country. I learned a lot about food that year.

          You don’t really need to spend much to have lots of fun with your friends! Pick a few of these ideas and start trying them out this weekend with your friends!

          Featured photo credit: Unsplash via unsplash.com

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