Due to the considerable student debt, job struggles and different priorities, millennial don’t have enough resources to purchase a house. Millennial mostly belong to the generation of renters. However, as they enter into their 30s, some of them will be established financially, have their own family and will eventually start to show interest in owning their own home.
Below are a few useful tips from Rakhi Madan Mortgage Agent for millennial in purchasing a home.
Do the Math
To know if you can afford to buy a home, write the numbers down. Most lending institutions follow the 28/36 rule. This means that your property tax, mortgage income, and insurance must not comprise more than 28% of your gross monthly salary. Anything that’s beyond this will reduce the value of your home and will be at risk for future foreclosure.
Lenders will also consider your credit score to make sure you …