Buying your own home is a huge and critical step in anyone’s life. There are different factors that play vital roles in your success as a first-time homeowner.

Sure, deciding about such a vast purchase seems tough. However, it’s actually possible to do much better than your parents!

We’ve put together the basic concepts you need to understand before making this long-term commitment.

What’s Different With the Millennial Home-Owning Process?

It’s very clear how different the process of buying a house is nowadays. Thanks to technology, Millennials are now accustomed to transactions done entirely online. A lot of websites with real estate listings have surfaced as well, changing our lives forever.

Years ago, you could only view listings either by going from house to house, checking the listings in the papers, and talking to real estate agents. These days, realtors are mainly valued for their communication skills, connections, and knowledge of the latest marketing strategies and processes.

Despite the process becoming relatively easier, the world can see a downward trend of Millennials buying their own homes. Some of the reasons are inflation, as well as Millennials’ mindset to start a family later than the previous generations.

What You Should Know Before Buying a House

Despite Millennials having access to unlimited information with the internet, there are still many buyers that just jump the gun and end up regretting it. If you don’t want to be one of them, you should be aware of the following before deciding to buy a house:

How a house is not automatically a good investment

Many people have misunderstood that owning a house as your personal residence is an investment. This is because the property appreciates over time. However, since its main purpose is to provide you shelter, you can’t readily sell it, and it is therefore not an investment. Meanwhile, a property you bought and rented out for a significant profit is an investment.

What your purpose is in buying a property

Are you settling down and starting a family? Do you want independence and start living alone? Purchases this big drastically hits your savings and would affect your future. This is why you should understand why you want to buy a house. From there, you can decide how and what kind of house you will buy.

What your priorities are

Buying your first home isn’t as simple as it might seem. You have to list your priorities and act accordingly. Knowing if you value budget, comfort, or future goals the most will help you paint an idea of how your future home should look like.

How much you actually should be saving for

Many people only consider saving enough for a down payment and relying too much on mortgages. You should keep in mind as early as now that it’s not the only payment you’d make. This is especially true if you’re eyeing houses that are a bit older or fixer-uppers. Despite being cheaper than newer houses, furnishing, repairs, and maintenance are still expensive. Older homes tend to have substandard water and electric connections or roofing---even the general upkeep costs significant money. You might want to consider having an emergency fund to cover all of this.

Tips in buying a home as a Millennial

Now, here are some tips to consider when it comes to buying a home as a millennial.

Never rush into the buying process

A thorough house-owning plan will never do you harm. It might be tedious, but it’s worth it. With a lot of careful consideration and investigation, you would be able to buy a much cheaper, more strategically located house. Most importantly, planning enables you to be able to anticipate most of the risks that come with the purchase.

Do your research and plan thoroughly

As a Millennial, you have the power of information. Some buyers are clueless and look more for things that would not matter that much in the future. Some even let their realtors handle everything. That’s good, but it’s better to familiarize yourself with the basic real estate terminologies and processes.

Many of Millenial’s regrets after buying their homes can be completely avoided if they thoroughly planned ahead. For example, you can actually shop around different lenders to bargain your way to the lowest mortgage rate.

Investigate the house’s location

One of the basic things you should do before deciding to buy a home is to check it personally. However, some skip this vital part and end up missing small details they would later find unbearable. You can drive around your neighborhood. Check how your neighbors look and behave. These may be defining factors for your next house.

Check the house’s structure for possible repairs

When inspecting a house, you should not let its external appearance dazzle you, especially for older homes or fixer-uppers. Check how old the roofing, water connection, and electricity are. Check if the structures are up to today’s standards and how much should be repaired if there are any. Also, remember that older houses have a harder time getting insurance.

Buying a home as a millennial is a fun but challenging part of your life. It serves as a threshold to your next chapter, so make sure you’re prepared to make it a good one. Technology has paved the way for a more efficient process. And if you desire the best purchase you can have, make sure to plan everything ahead.

Want to increase your income while staying at home? Read ”10 Ways to Make Money From Home During COVID-19” to learn more.