Reality Check: How 20-Somethings Should Prepare for Buying the Dream Home

the dream houseLate-night parties every weekend, putting off career in favour of travelling and living pay check to pay check.

These are some of the things many people believe Millennials are doing in life. It’s not surprising that most 20-somethings tend to focus more on splurging than saving for the future. Sure, money can buy happiness, but that doesn’t mean you need to act first then think later about your decisions.

Believe it or not, your 20s matter. You don’t have all the time in the world to waste, so you need to take yourself seriously. If you are planning to buy a house in the near future, do something that will help you become financially prepared.

Fix Your Credit History

Whether you’re 21, 25 or 29, focus on building your credit history. You can do this by paying your bills on time and monitoring your credit report. There are tools that can help you determine your creditworthiness instantly and know your financial past. Doing this will surely make you a successful homeowner. If you can improve your credit rating, you can get pre-approved for a loan.

Know How Much You Can Afford

Before you begin looking at homes, real estate developer Manor Lakes suggests researching and understanding the costs associated with home ownership. In addition, calculate how much you will spend when decorating or maintaining a home. Make the most of your 20s now. How you spend your time will define you and affect your future.

Save and Increase Your Down Payment

Time is one of the most valuable things you have, so use it wisely. Start saving more money now and avoid big, costly expenses. A bigger down payment does not necessarily mean immediate loan approval, but it will surely help.

Money is not about making someone happy or envious – keep in mind that it’s something you need to live on. Your 20s is a time to find your own path, so make smart financial decisions and change your attitude towards money.

About the Author

James Maxwell, a Media Buyer at a media buying agency in New York. He was a former media ethics professor at a university in Los Angeles.