Recently CNN interviewed a young couple who shared their tips for qualifying for a mortgage at a very young age. While simple, the couple’s sound advice is great for those looking to get a mortgage on their dream home at 25 or at any other age.
Tip 1 – Work a Part Time Job if Possible
While going to school, both the man and woman in the couple interviewed worked part time jobs. Working a part time job with a significant amount of hours can really help with savings. If you are not still in school, but currently working a full time job, you may want to consider taking on something part time for a while to help you save and build a better financial footing.
Tip 2 – Work as Close to Home as Possible
In today’s job market, this tip might be tough to follow for everyone, but as the couple noted, keeping commuting costs to a minimum is always smart. Commuting costs can really leave you with less room in your monthly budget, translating to the need for less house and a smaller mortgage.
Tip 3 – Keep your Credit Clean
Having good credit can help you to obtain the best interest rate and mortgage type. If your credit is less than perfect but you’d still like to buy or refinance a home, talk to your mortgage broker about what steps you can take next to improve your standing.
Tip 4 – Make a Down Payment that Makes Sense for You
The young couple recently interviewed by CNN stated that they made about a 5% down payment on their home before their mortgage. This was the amount they felt comfortable with and the amount that made sense for them. While some couples strive to pay 20% or more, different numbers may work better for different people. Be sure to check with an expert mortgage broker to find out what will work best in your situation.
Can you buy your dream home by age 25? Although this will depend on your personal situation, consulting with the experts at Paradigm Mortgage is a great place to start when it comes to finding out.