The sooner you buy a home, the farther ahead you’ll be—but how can you prepare yourself for such a major purchase?
Young people are in the perfect position to get ready for home ownership. Even if you’re not ready quite yet, preparing for the future is easy if you take the right steps.
Home Buying for Young People: Plan Ahead
Aside from saving money (stashing away 10 percent of all the money you make is never a bad idea; in fact, you should save more if you’re able), you can line up your finances now so that you’re fully prepared when you want to purchase your first home.
3 Ways Young People Can Plan for Home Ownership
- Save, save, save!
Start keeping your extra cash in a savings account, set up a CD or money market account, or purchase bonds at face value.
- Build your credit.
Apply for a credit card, but make sure you use it responsibly. If you can, apply for a car loan. Again, make sure you’re making every payment on time.
- Gather information.
Learn everything you can about the home buying process, including how much money you need to save for a down payment and the pros and cons of home ownership.
Is Buying a Home a Smart Choice when You’re Young?
In most cases, it’s a smart choice for responsible young people