Getting on the Property Ladder Early

In the age of rising house prices and student debt, getting on the property ladder early in life can seem pretty impossible to young people. While buying a home is a huge step and can be a daunting process, this reality doesn’t have to be as out of reach as it might appear. One of our greatest pieces of advice to younger generations is to get in the market with a starter home so you can start building your equity (see our previous blog for more on this topic), and ultimately climb that ladder to your dream home!

With an unstable job market, the first logical piece of advice to “get a good job” can seem as equally disconcerting as buying a home itself. Far more important is living in a way that allows you to save regularly. This can not be understated, and a little sacrifice for a short term can really set you up for endless future success. Most housing deposits are typically between 10-20%, which is a large sum considering the cost of properties on the market today.  Of course, housing cost absolutely depends on the area’s market, and looking in less-sough-after areas is a good trick to staying within your budget.

With those savings, it is important to work on paying off existing debts and building up good credit. Modern mortgages are about 25-30 years, some even reaching 40 years. This is a wild fact, considering your parents likely took 6-10 years to pay off theirs. With that fact, mortgage lenders want to see a significant effort on monthly debt repayments so that they can trust you will be able to hold up your end of the agreement. 

Now that we’ve touched on some of the more obvious tips, we can focus a bit more on some of the more exciting options first time home buyers have.  State and national loan programs can make home ownership affordable, if you know where to find them. National programs like Conventional, FHA, VA and USDA loans provide hope for accessibility in the housing market for a wide variety of people. Colorado specifically also offers some incredible programming, like the CHFA mortgage program, CHFA down payment assistance grant and CHFA down payment second mortgage loan. Check out this article from Nerd Wallet for more info on each of these terrific accomplices. 

Specific to Summit County, there are some additional opportunities that we’d love to share with you at KINDRED and Clearwater Lofts in Keystone and Fourth Street Crossing in Silverthorne. With over 30 years experience in mountain resort real estate, we are here to help you find the keys to your dream mountain home. Contact us today, even just to ask questions and inquire about some things you need guidance on. We are here to help! 

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