Tips For Moving Out Of Your Parents Home And Qualifying For A Mortgage
This ARTICLE On Tips For Moving Out of Your Parents Home And Qualifying For A Mortgage Was PUBLISHED On October 15th, 2019
A large percentage of millennials and young folks still live with their parents.
- Since the 2008 Great Recession, there has been a substantial increase in people between the ages of 25 and 35 years of age living with their parents
- Data and statistics state as many as 25% of people between the ages of 25 and 35 years old still live with their parents
- Many folks who leave for college return home to live with their parents after graduation
- There are various reasons why people still live with their parents which we will discuss in the following paragraphs
In this article, we will cover and discuss Tips For Moving Out Of Your Parents Home and buying a home.
Reasons Why Younger Folks Still Live With Their Parents
Adults living with parents is more common today than ever before.
- However, most young adults eventually move out of their parent’s homes and either rent and/or purchase a new home
- More and more are living with their parents to save money for a down payment on a home purchase
- Others live with their folks because they are unemployed and/or underemployed and are waiting for that special dream job
- Yet others live with their parents to catch up in paying off their debts
Benefits Of Moving Out Of Your Parents Home And Getting Own Place
We will be offering tips for moving out of your parents home and becoming a first time home buyer.
- We will help our viewers in giving them tips on planning and researching becoming a first time home buyer
- Also, the advice in transitioning leaving their parents house to their own place
In general. living on your own is less stressful, easier, and offers independence and freedom.
Tips For Moving Out Of Your Parents House And Buying First Home
Many adult children still live with their parents so they can save money for a home purchase.
- First, find out whether buying is better than renting
- If your job entails constant travel and potential job transfers to out of state, then renting may be better than buying
- If you have an area that you feel very comfortable living and plan on staying at that location for at least 5 years, maybe purchasing a home may be better than renting
Michael Gracz, the National Sales Manager at Gustan Cho Associates and first time home buyer mortgage expert advises the following:
Before you start packing, research the rental or housing market. Decide what area you want to live in, and find out what rentals or houses are going to cost by seeing what price they’re listed for in the classifieds or on Craig’s List. If the area you want to move to is beyond your budget, give thought to finding a roommate or looking at a neighboring town that’s more affordable. Don’t forget to factor in the cost of commuting from your new place to your job. Six months to a year before moving out of your parent’s house, conduct a practice run to see if you can afford to live on your own. Put aside money each month that’s equal to your projected rent (or mortgage), utility bills, groceries, and other living expenses. Not only will this exercise help you get used to having less disposable income, but it also will give you a nice amount of savings to cover your moving costs, a security deposit, or a down payment.
Should I Rent Or Buy A Home
If you are not ready to purchase a home, renting is an option. Reasons for not buying are the following:
- Not sure about your job stability
- Do not know where you want to set up your final residence
- In the process of researching the best places to live
- Planning on living in different areas until you find a place you want to settle in
- Have a job/career that requires relocation
Renters who want to save money may want to get a roommate. Having a roommate or multiple roommates allows you to split the cost of rent, food, utilities, and other costs. FHA allows you to purchase a 2 to 4 unit owner occupant property with a 3.5% down payment. You can live in one unit and rent out the others for additional income.
Other Tips For Moving Out Of Your Parents Home
Massimo Ressa, the CEO of Gustan Cho Associates Mortgage Group says the following:
After you have done all your research and determined what you can afford, search for an apartment in the classifieds, on bulletin boards, and on Craig’s List. When you tour an apartment, dress presentably so that you make a good impression with the landlord. Bring your parents along to help you determine if the place is worth renting. If you’re house hunting, utilize the services of a real estate agent, whose commission is paid by the house seller. Get pre-approved for a mortgage and don’t buy more house than you can afford.
Qualifying For A Mortgage
Many young home buyers do not realize that you do not need a boatload of money to purchase a home. Many are under the impression that you need a 20% down payment plus closing costs to purchase a home. Many also assume that you need stellar credit to qualify for a mortgage. Homebuyers do not need a lot of money to purchase a home. Homebuyers can qualify for a 3.5% down payment FHA Loan with 580 credit scores. Homebuyers with credit scores under 580 and down to 500 FICO can qualify for FHA Loans with a 10% down payment. VA and USDA loans do not require any down payment. Conventional loans require 3% to 5% down payment. Non-QM Loans require a 10% to 20% down payment. You do not have to pay outstanding collections and charged-off accounts to qualify for a mortgage. Borrowers can qualify for home loans after bankruptcy and foreclosure. For more information about this topic and/or other mortgage-related topics, please contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at [email protected]