More and more millennials and the up and coming Gen Z’s dream of home ownership. Unfortunately, many of the young people today carry large student debt. Home ownership is achievable by following these three simple steps.
- Learn to live on a budget. Know exactly where and how you are spending your money. It is so easy to budget with all of the free apps available today. Prioritize your spending, downsize what isn’t necessary, and know what sacrifices, such as stopping at the coffee shop and going out to eat, you are willing to make in order to pay off your debts and save money.
- Build your credit history. Stay on top of your student loan, car loan, and credit cards. Make sure to pay them off each month on time. If you don’t have any loans or a credit history, open a credit card, use it, and pay it off each month.
- Automate a down payment savings. Have a designated amount of money automatically deducted from your paycheck each month and deposited into a house fund account. Keep the account separate and don’t touch it until you are ready to purchase a home.
Although, there are loans available for no money down, it will be necessary to have available funds for closing costs and miscellaneous expenses such as inspections. A sizable down payment with a good credit score can reduce the interest rate on the loan for your home purchase.
All good things in life, require a few sacrifices and work. Home ownership is achievable, you just need to take the proper steps to get there.