In recent years, there’s been a surge in millennials and Gen-Zer’s opting to invest in homes before getting married. This shift indicates a growing trend among young individuals and families, who are prioritizing homeownership. Keep reading to explore strategies for initiating your homeownership journey, the importance of selecting the perfect dwelling, and the practical steps to buying your dream home in your 20s.

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Planning Ahead

Before diving into the homebuying process, it’s essential to consider your financial readiness. Whether you’re just starting your search or ready to make a purchase, these steps will guide you toward a successful homeownership journey:

  1. Obtaining Pre-Approval: Streamline your home buying process by obtaining pre-approval for a mortgage. This demonstrates your seriousness as a buyer and provides you with a clear budget for house hunting. Consult with a lender to secure pre-approval before beginning your search. A lender will provide advice on which debt you should pay down to increase your credit score and how much you should save for a down payment. 
  2. Budgeting: Budgeting helps you determine your affordability and ensures you stay within your financial means when purchasing a house. Determine how much you want to spend monthly given the tax benefits of owning vs renting.
  3. Assessing Eligibility: One of the initial steps for first-time homebuyers is to determine their eligibility. Checking your credit history early on is crucial, as it impacts your eligibility for a mortgage and the interest rate you’ll receive. Aim for a credit score between 580 and 620 for favorable mortgage programs.
  4. Managing Debt-to-Income Ratio: Lowering your debt-to-income ratio is vital for your financial health. Lenders evaluate this ratio to assess your ability to manage mortgage payments. Reduce existing debt to improve your chances of securing a home loan.
  5. Saving for a Down Payment: Saving for a down payment is a crucial step in the homebuying process. The larger your down payment, the better your mortgage terms and monthly payments will be. Start saving early to build up your down payment fund.
  6. Researching Loan Programs: Familiarize yourself with different loan programs available to homebuyers, such as conventional loans, FHA loans, VA loans, and USDA loans. Each program has specific requirements and benefits, so being informed helps you choose the best option for your situation.
  7. Preparing for Deposits: Be ready to make a deposit once your offer is accepted. Having funds readily available ensures a smooth transaction and expedites the closing process.

Choosing the Right Home

After meticulous financial planning and consideration, it’s time to envision the future look and functionality of your dream home. Selecting the right home design and floor plan is crucial as it not only influences aesthetics but also impacts your daily comfort and long-term satisfaction as a homeowner. Here are some key factors to contemplate:

  1. Functionality: A well-designed floor plan caters to the needs of its occupants, ensuring practicality and convenience. Assess room sizes, bedroom count, and spatial flow to ensure it aligns with your lifestyle.
  2. Flow: The layout of your home determines how seamlessly you navigate through the space. Choose a floor plan that promotes efficient movement between rooms, minimizing wasted areas. Consider the placement of doors, hallways, and storage to enhance functionality.
  3. Value: Thoughtfully designed floor plans can enhance the value of your property. Buyers are drawn to homes with sensible layouts and optimized space utilization. A desirable floor plan can attract more potential buyers and potentially increase resale value.
  4. Natural Light: Maximize the benefits of natural light by considering window orientation and room illumination. Ample sunlight enhances the ambiance and positively impacts your well-being. Choose a floor plan that prioritizes natural light exposure.
  5. Storage: Evaluate the storage solutions offered by the floor plan, including built-in closets, pantries, and storage areas. Sufficient storage promotes organization and a clutter-free living environment.
  6. Style: Reflect on your desired aesthetic and consider how the floor plan complements your vision. Ensure the layout provides a suitable backdrop for your preferred furniture, decor and color scheme.

Buying a new home in your 20s

With your finances sorted and a home design and floor plan tailored to your lifestyle and goals, you’re on the brink of purchasing your dream home. Here are the final steps to kickstart your journey to homeownership:

  1. Go House Hunting: Explore properties that align with your needs and desires, considering factors like location, size, layout and amenities. Attend open houses and explore neighborhoods to gain firsthand insights beyond online listings.
  2. Schedule a Home Inspection: Prioritize a thorough home inspection to uncover any hidden issues or concerns. Even seemingly flawless properties can harbor unseen problems, so enlist the expertise of a trained professional to assess the quality, safety, and overall condition of the home.
  3. Close On Your New Home: Once all contingencies are met and the necessary paperwork is finalized, it’s time to close on your new home!

Selecting the perfect home plan necessitates careful thought to ensure it aligns with your aspirations. KLMR Homes, a local home builder specializing in crafting homes in sought-after locales, is a prime option for those seeking to build their dream home.

Author: Kaylee Smith is vice president of sales and marketing for KLMR Homes, a Scottsdale-based homebuilder with plans for new residential properties across the Valley. The team’s vision is to build quality constructed homes with long lasting value, while delivering a positive home building experience. For more information, visit www.klmrhomes.com.