Are you ready to move into a place of your own? Leaving your parent’s home can be a difficult task but a necessary one for every young adult. This move is going to require extensive planning and consideration.
Whether you are a recent graduate or moved back home to save up money, remember that you are not alone in your situation. According to Pew Research Center, 52% of young adults still live with their parents. For reasons varying from student loans to changing societal norms, for the first time since the Great Depression over half of young adults continue to live at home.
Once you decide to make the move, it is important to collect your savings or begin to save. Ideally, you want to have enough savings to cover two month’s worth of expenses by the time you move out. Monthly expenses to consider should include not only your rent and utilities but also insurance, groceries, cell phone bill, transportation, and extra cash. These expenses can add up fast so make sure that you are tracking your spending in order to be self-sufficient. If you are unsure of what your bills and payments will look like on your own, ask your parents and friends, for estimates of what they are paying. Creating a budget will be a lifesaver during those first few months as you get your footing as a home-owner.
If you believe that it is the time to go out on your own, here are some tips to get you started:Communicate with your parents
The first thing to do when planning to move out is to let your parents know. This transition is going to be a big change for all of you and every member of your current home should be aware of your plans. While your parents may be excited to see you begin a new chapter of your life, there is bound to be sadness whenever a child moves out of their home. Be careful and sensitive to these emotions. Make sure that you let your parents know your plans and reasons for choosing to move out on your own.Establish good credit
This is vital when searching for a new home. Your credit score will determine whether you qualify for a mortgage and affect the interest rate lenders will offer you. Having a bad, or nonexistent, credit score can prevent you from gaining a home loan from the bank. If you are unable to get a loan it can make the possibility of homeownership much less likely.
Taking simple steps can be instrumental in increasing your credit score. For example, getting free copies of your credit reports (Experian, Equifax, and Transunion) will allow you to see any errors or weaknesses within your score and address them. In addition, always remember that paying your bills on time and keeping credit card balances low is the best method to keep your credit score high.Determine your budget
Potentially the most important step in finding a home is deciding how much you want to spend each month in rent. According to Investopedia, as of April 2020, the average price for a new home was nearly $364,500. Some pay much more than this and some pay much less but you should always remember the critical rule, “do not purchase more house than you can afford.”
It is normal to feel pressure to spend outside your comfort zone when competition arises for a property that you want. To avoid any financial stress, set your budget, and stick to it by looking at properties below your price limit to allow for some wiggle room for potential bidding.Find a realtor
A good realtor is someone who will listen carefully to your priorities and budget and show you options that fit your needs. You need a realtor who will not waste your time with outlandish or overpriced homes. They know the local areas and current market trends, all to be able to find the perfect fit for you! A realtor also has professional connections and can recommend you to not only a reputable lender but also inspectors and other professionals who you will need throughout the process.
Online searches may allow you to see a wide variety of options on the market but only a realtor will have the expertise and personal touch to make your home-buying process as easy as possible.Pack
Moving out means starting a new chapter of your life. Deciding what you want to keep and what you think should be discarded is a time-consuming but necessary task. Making sure that your moving experience is not a nightmare requires planning, so try to start with these tips.
Being a first-time home buyer can be intimidating. At Holland Homes, we want to make this process as seamless as possible by helping you every step of the way. If you have questions as a home buyer, please contact us and we would be happy to assist you. Also. check out these common questions that we hear frequently from first-time home buyers.
If you want to learn more about the next steps to take as you finalize your plans, speak with our experienced realtors today! We would love to assist you throughout this exciting process.