Congratulations! You just told your quarter-life crisis to eff itself—it’s too early for the therapist couch. That’s for your 30s. In fact, you’re actually so awesome that you’re even considering buying a home, sure to be the crowning glory of your 20s. Let’s make this happen. Here’s a time- and money-saving guide to ensure your first home purchase is a hundred.
1. Stay Away from Commitment-Phobes
Like someone who seems 6′ in their OkCupid profile but is a foot shorter in person, variable interest rates look fantastic in print. They’re incredibly low and inviting for first-time buyers, but be wary. They swing wildly with the market, just like that hot girl or guy who turns out to be psycho sometime after Date #5. Just like that, your monthly payment can balloon and stick you with something you did not sign up for. Stick with fixed rate mortgages. They’re attractive, reliable—and Mom and Dad will be proud.
2. As in Dating and Life, Fixer-Uppers Are a Gamble
Daydreaming of Victorian handyman special that you and your partner can renovate together? Maybe quit while you’re ahead and follow a Pinterest about a cabin in Idaho instead. While there’s value in purchasing a fixer-upper as your first home, you really have to be ready for the emotional trauma it can bring. Like your life-saving friend who can detect bullshit from a mile away, hire an inspector to examine the house inside and out. You’ll want them to get up close and personal with the foundation, structure, heating, plumbing (hey there), roofing, and doors/windows and provide rough estimates on how much it would cost to fix any issues they find. No surprises allowed.
3. Rooms On Rooms On Rooms
If you’re buying with your one-and-only, but are kid adverse, still consider a multi-family home. (And if you’re going to buy with someone you’re not married to, absolutely do not see The Break-Up). You can fill up the house anytime. Become a young landlord and rent out a floor or even a room to a friend. The extra income will fuel your next vacay. But always do a thorough background check of any potential tenant, from their financials to personal references. Even if they’re your brother-in-law. Especially if they’re your brother-in-law.
4. Be Independent
Who’s an independent boss? This lady. Channel her. If you still need parental cash infusions or like to hit Cabo with your credit card, you might not be able to handle owning a home just yet. And while the reputation of being a homeowner in your 20s is compelling, foreclosure and bankruptcy in your 30s are not. worth. it.
5. The Sweet Spot
One of the biggest ways to get that house in your 20s is slashing your down payment. Instead of sitting around scrimping and saving for the traditional (and insurmountable) 20% down, there are actually lenders that’ll let you put down 10% isntead. Do the math: that’s half the saving, half the time. You’ll no longer be pushing middle age to compete in a crazy market like ours, and you couldn’t ask for more of a blessing.
SoFi is a marketplace lender that’s changing the way things are done. We don’t bank, watch TV or order food like our parents, so why should we buy a house like them? Apply for your mortgage with SoFi to halve your down payment. Find your rates in only two minutes by clicking here.
