Buying a home is a major milestone and one that few people reach in their 20s. For those who do manage to get together the down payment and land the well-paid job in their 20s or early 20s, there are key lessons to learn from older home owners. Although it was a lot different to buy a home decades ago because of higher interest rates, some of the same principles still apply. When buying a home in Springfield, MO, consider the advice of established home owners who bought early in life. A recent article by forbes.com points out home ownership feels like a major leap into official adulthood.
Buying a Family Friendly Home
Even if you don’t want children when you buy a home in your 20s, consider the resale value of owning a home that’s suitable for people with children. Some home buyers in their 20s make the mistake of buying in a Springfield, MO, neighborhood without checking out the school districts. They often assume it doesn’t matter because they don’t personally want children.
Evaluating Your Budget
As lenders loosen their lending requirements a little, it’s important for buyers to take a realistic and hard look at their budgets. To get the sweet spot for a home loan, add up the mortgage, property taxes, and homeowner’s insurance and homeowner association fees. The total expenses should not exceed 25 percent of your income. A major mistake young home buyers make is failing to budget for increased utility and cable bills. Also, remember the so-called “nesting spending” such as new home paint, décor and furniture.
Other good advice from older buyers is to imagine future possibilities of what you will want to do with your home. At a certain point, you could decide to turn your home into an investment property, but if you find out your HOA restricts rentals, it puts you in a bind. Finally, ask your Springfield MO real estate agent about the best real estate professionals to help with the title, inspection, appraisal and lending. Oftentimes, a good real estate agent has tight connections.