Pursuing the American dream of homeownership is a big deal and many consider it a step into adulthood. And now that millennials are joining the party—the average first-time home buyer in the U.S. is 31 years old. But before you buy, here are some things to do.
1. Assess your need
You don’t want to be buying a home just because you turned 31 or because your friends have started doing it. Be sure to buy a house that suits your lifestyle and needs.
2. It's a math question
Many people focus on the down payment when they think about buying a home. Yes, the down payment is usually a large chunk of money. But there are other upfront costs you need to think about—taxes, property insurance, and closing costs for example. More information is further down this page.
3. Get pre-approved
In most cases, you will need a government-issued ID, a credit report (you can get free copies every year), a verification form from your employer, W-2 forms, federal tax returns, and bank and asset statements.
4. Retail therapy
A house is likely the largest purchase you’ll ever make, so treat it like other large purchases. That means you want to shop around as you would for a car, TV, or couch.
5. Be prepared to walk away
If you aren't comfortable with the purchase, you may have to walk away and leave the house for someone else to buy. You want to have full confidence in your decision. If you don't feel confident, it's not meant to be.