Are you Too Young to Buy a Home

The stereotype of the twenty-something single is a small apartment with roommates and lots of those cups of noodles. The young twenty-something couple often is thought to live in a small, affordable rental with hand-me-down furniture.

However, that isn’t the case anymore. An increasing number of consumers are buying their first homes before they reach the age of 30.

It’s never too early to buy a home. There are different responsibilities, but young people are just as equipped to purchase a home as older buyers.

One of the beneifts is that the earlier you purchase a home, the younger you are when you pay off the mortgage. You are building equity in an investment, which is always a good idea. While it isn’t a guaranteed return, most buyers do well given time and wise choices.

It doesn’t matter you age, you should be sure that you are ready to buy a home. Consider the following:

What is your job situation? If you are in a stable position that you plan to remain in, then you should consider putting down roots. You might want to wait if you think you may change jobs or be transferred.

Is your credit in order? Having a good credit score is essential in making a wise purchase. If you know your credit score and it looks great, then you are probably ready. If your score needs work, you should take the time to fix it. It can save you thousands, not only on your mortgage, but you insurance premiums, credit cards and other loans.

Do you know what you are looking for? Look to the future in considering a home for purchase. You will want to live there for at least three years. Think about the expansion of your family and other issues that will come up over the years.

Consider how much you can afford to buy. While your dream home may be out of your price range right now, you can make a wise decision. In fact, with each home my family has bought and sold, we’ve come closer and closer to our dream — partly to the increase in profits.

Look at all of the responsibilities of owning a home. You will now have to make the repairs. You will have to deal with the leaky sinks and sagging gutters. You will have to pay all of the utilities and maintain the property. No more landlords to take care of things for you. Owning a home is a big responsibility.

There are also added costs to consider. Not only do you need to save a sizeable down payment, you will also need closing and moving costs. You will need to have reserves for any necessary repairs. You will have to pay homeowner’s insurance and property taxes on the home. It can all add up, so make sure you remember all the little things when looking at what your budget can afford.

Age really doesn’t matter all that much in the decision to buy a home. It’s an individual decision, based on many factors. If you are ready, then go for it. If you are hesitant, don’t jump too fast. It’s a big step.

John Weise represents RateTake Refinance Rate marketplace. RateTake matches consumers with multiple lenders offering low mortgage rate quotes. Get your free Mortgage Quote.

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