Establish Your First Home

For most recent college graduates, purchasing their first home may not be a financial reality or a top priority. But the benefits of homeownership are conveyed to young people in the same manner as anyone else. Owning a home provides a vehicle for building equity, reducing tax liability, and investing in real estate. The following strategies can help young people successfully navigate the real estate market:

1. Save and Establish Your Credit History

The first step to achieving financial independence is to consistently save a portion of your income for future needs. Savings early in life can contribute to increasing the size of your down payment and reducing the monthly payments on your first mortgage. Establish your credit and maintain a

Keep in mind the purposes for which you want to buy a home, and determine how critical location is to this equation. Also, consider the opportunity costs involved with travel time both to work and other places of interest.

7. Follow Through with an Offer

When you finally walk through the door of the house that feels like home, satisfies your requirements, and is within your budget, make an offer! By now you have put in the time, researched the comparables, and teamed up with a realtor ready to negotiate on your behalf. Identify what is most important to the seller (price, closing costs, etc) and negotiate for other concessions that generate additional value for both parties at closing.

Buying your first home is one of the major accomplishments of your life. For first time homeowners, the home buying process may seem daunting at first, especially for young people in their early twenties. However, you can position yourself for success and homeownership by following the simple strategies outlined in this