Gasp! Could it be that the generation scrutinized for job-hopping and living in their parents’ basements is finally growing up and looking to settle down? Looks like it!
According to new data from Apartment List, 80 percent of millennials want to buy their own homes. And, despite myths about millennials not wanting to own anything, many have been doing so. 2017 marked the fourth consecutive year that millennials were the largest generational group of homebuyers, according to NAR’s 2017 Home Buyer and Seller Generational Trends Report. In other words, millennials are totally powering the housing market.
If you’re surrounded by friends and family who are taking the leap into real estate, you may be tossing around the idea of investing in a property yourself. How do you know if you’re truly ready to own a home? Here are five signs you’re ready to break it off with your landlord.
5 Signs You’re Ready to Own a Home
1. You’re debt-free
Debt-free is a wonderful place to be. Paying off your credit cards mean you have more cash for your mortgage and other expenses that come with homeownership. And trust us, there are quite a few. Consider how much you’ll need to budget for property taxes, homeowners’ insurance, repairs, HOA fees, and more. If you’re forced to use a credit card because you spend more money than you have, continue to chip away at your debt and keep saving for that dream home.
2. You have a killer credit score
The average FICO credit score in the U.S. is currently at an all-time high of 695. If you’re anywhere below 700, you’ll want to clean up your credit before buying a home. Lenders want to see a credit score of at least 720 before they hand out a low interest rate. If you’re debt-free and have excellent credit, you might just be ready to own a home. But, let’s take a peak at your resume first.
3. You have a steady job
Millennials have fully embraced the gig economy lifestyle. This workforce shift favors temporary positions in less traditional settings, making the 9-to-5 job a thing of the past. The only problem: you might have a hard time securing a mortgage. Lenders calculate how much house you can afford by looking at your pay stubs from the previous 24 months. If you’ve had the same job for a few years, you’re probably ready to own a home.
4. You’ve saved enough for a down payment (and then some)
Homebuyers no longer need to save 20 percent to secure their dream homes. In fact, you can buy a property for much less. But when you consider that the median list price in Breckenridge is currently 1.2 million, a 3.5 percent down payment is a nice chunk of change. On top of your down payment, you’ll ideally have saved extra cash for closing costs, insurance, taxes, repairs, and furnishings. If you saved enough for your down payment as well as additional funds for repairs and upgrades, you’re almost ready to own a home.
5. You’re ready to settle down
These days, remote jobs make it possible to plug into your laptop and work from anywhere in the world. This freedom makes it tempting to pack up and move on a whim. If you’re not ready to commit to living in Summit County for at least five years, that’s totally fine. There are many fantastic rental properties to choose from until you decide to stay! However, if you’ve fallen in love with this cozy mountain town just like we have, you’re definitely ready to own a home.
Are you ready to own a home in Summit County?
A house is probably the biggest investment you’ll make in your lifetime. It’s completely natural to feel nervous and excited about taking such a big leap! If you identify with all of the items above, there’s a good chance now is the right time to transition from leasing to ownership. After you celebrate this major milestone, give us a call to begin the home buying process. At Dwell Summit, we know Breckenridge and the surrounding communities like the back of our hand. We’d be thrilled to show you some of the gorgeous properties on the market and help you find your dream home. We look forward to chatting with you!