When I was in my early twenties, I started cooking up the dream to buy a house young.
I was still sharing an apartment at the time with my three best friends, but my days as a college student were numbered.
With only one semester until graduation, I started seriously looking to the future and making plans.
While most of my friends were trying to get into grad school, find a job, or even just get their term papers in on time, I already had all that locked down.
I’d been with my high school sweetheart for almost five years at that point, and I had a feeling we’d be getting engaged in the near future.
In my mind, it was the perfect time to start house hunting…
Fast forward to today, and I’m writing this post from my very own office in a home that we bought when my now husband and I were just 22 years old.
We signed on to build a brand new home in February 2018, and moved in late August of that same year.
While it was just a pipe dream that started from my college apartment, we were able to make it happen in just one and a half years.
Most people’s eyes almost bulge out of their heads when we tell them we’re homeowners (“How old are you?”, “You look too young to own a house!”).
While it’s definitely not the norm to become a homeowner at a fresh 22 years old, we do have some advice for anyone else looking to buy a house young.
There are absolutely tricks you can use to increase your odds of being able to purchase a house at a young age, which is why were sharing with you everything we know and have learned along the way.
How to Buy a House Young (In Your 20s)
1. Build Your Credit Score Now
One of the biggest mistakes I made in our journey to buying a home was not establishing my credit score early enough.
I actually didn’t get my first credit card until less than a year before we started house hunting.
Therefore, I had absolutely zero credit when we went to get pre-approved for a mortgage.
Even though I paid all my bills on time every month, I hadn’t had the line of credit open long enough for lenders to recognize my score and be able to pull enough data to trust me with a loan.
This was no bueno. Our dreams of being homeowners were almost completely derailed for the next few years.
Luckily, my husband has had a credit card since high school and has therefore had ample time to build up an impressive credit score.
This was great news, and it played a huge role in helping us get a loan at a young age.
If you’re in the market for your first home, first and foremost make sure you establish a great credit score early on!
This signals to lenders that you’re reliable and will be able to pay them back.
2. Keep Track of Any Recurring Payments
One thing I learned during the process of applying for a loan is that lenders also like to see that you are able to keep up with recurring payments.
Even though I didn’t have a credit score to go off of, I would have been a lot better off if I had a history of recurring payments on one of my accounts.
Things like paying rent, gym memberships, etc. can help signal to lenders that you pay your bills on time and will be responsible enough to pay your mortgage if they approve you for a loan.
I didn’t have any consistent, recurring payments to show, and this also made it very difficult for us to get approved.
3. Live Rent Free
One of the biggest factors that contributed to being able to buy a house young was that both R. and I were able to live rent free.
He lived at home through most of his college years, and I lived at home for a year after graduation.
Not only did Rich save money by not having to pay for rent during college, but it was enormously helpful that I was able to live with my parents free of charge when I secured a full-time job.
This allowed me to put a large portion of my income into my savings account and start getting serious about purchasing a home.
Obviously, living rent free is not possible for everyone.
I’m incredibly fortunate that my parents allowed me to do this!
However, if you think this might be an option for you, it’s worth a shot.
It’s a great way to save money and cut down on your costs if you’re able to do it.
If this isn’t an option for you, think of other ways you can cut down on your living expenses.
Maybe you can share a cheap apartment with a few friends while you save up some money in the meantime.
It’s all about innovation and seeing what works for you given your current situation.
4. Graduate Early
Another factor that contributed greatly to my ability to buy a house young was the fact that I graduated college an entire year early.
If you’re still in school, this is definitely something to consider (find out how to graduate college early here).
Don’t be afraid to talk to your academic advisor and see if it’s a fit for you.
I was fortunate that I came into college with credits already, and I was able to finesse my schedule each semester to put myself ahead.
While this isn’t a reality for every situation or major, it’s something to think about if you’re still in school and want to try to save some money.
5. Take Advantage of First Time Homebuyer’s Programs
Did you know that you can catch a break as first time homebuyer?
R. and I didn’t do too much research into this, but there are programs out there that I’d recommend looking into.
Sometimes you can get a lower interest rate or down payment on your mortgage if you qualify for the program.
6. Set a Budget For Yourself
Obviously buying your first home requires saving (a lot of) money.
When I started working full time, I immediately set up my accounts so that a certain percentage of my paycheck would go into my “house fund” each week.
I knew how much my monthly expenses would be and, beyond a little money for fun stuff, I put the rest in a savings account I didn’t touch until we were ready to buy a house.
Try to create a budget that you can stick to, and dedicate a certain amount of your income to your savings account each time you get paid.
Even if you can’t afford to save much at first, a little bit goes a long way over time.
7. Do Your Market Research
Another thing to consider when looking to buy a house young is where you’re actually going to live.
Even though I don’t live in a huge city, there are many areas to choose from when it comes to where to live.
The prices of homes vary greatly depending on the location, and R. and I made sure to do our research ahead of time to find out what the average selling price was in the area we wanted.
We then had to do the math and determine if this was realistic for our budget.
8. Set Realistic Goals
Your first home doesn’t have to be your forever home, especially if you’re planning to buy a house young.
While you of course don’t want to settle for something less than what you really want, make sure you’re setting realistic goals.
Odds are, you won’t get everything on your checklist the first time around, so it’s important to decide what really matters to you in your first home.
A lot of times you may have to sacrifice location for a bigger space, or vice versa.
It all depends on what the market is like!
Conclusion
Buying your first home is a huge decision, and it’s not one to take lightly.
Everyone comes from different walks of life and privilege, and I would be lying if I said I hadn’t been given a leg up in some areas of life.
That being said, there’s also plenty of people I know who come from similar situations as myself, that haven’t made the same decisions and sacrifices I have that have allowed me to become a homeowner at such a young age.
I knew in college that I wanted to buy a home quickly, and I developed a plan to make that dream a reality.
Everyone’s journey is different, but I hope that some of these tips are helpful to any of you that might be looking to buy a house in your twenties as well!