If you’re a millennial in the market for a home, you probably already have a pretty good idea of what you want—maybe it's a starter home in the suburbs, a sprawling ranch with a huge yard or a townhouse just steps away from your favorite bars and restaurants.
A wish list is good to have, but what's really important when looking for a home?
Take a look at some of the most important things millennial homebuyers should keep in mind when looking for their first home.
1. Know your budget and stay true to it
This is the number one rule for house hunting. Keep in mind that what you can affordand what you’re approved for might be two different things. Create a realistic budget and find out what you can comfortably afford.
It’s also important to remember that your total payment isn’t just your mortgage. Taxes, HOA fees, and homeowners insurance will all factor into the payment. Financial experts recommend keeping your total mortgage between 30 and 35 percent of your pretax income.
2. Consider investment opportunities
You want a home that not only provides value for you now but in the future as well. So how do you turn your home into an investment?
There are many ways to approach the investment of your home. You could purchase a fixer-upper, invest money (and a little labor) into making it safe and modern, and have instant sweat equity in your home. Or, you may want to think about buying a home in an area that could provide steady rental income in the future if you ever decide to move, such as in a college town or city that attracts tourism.