Buying Your First House? 7 Tips for Millennials and Other Generations

Buying your first house is a big decision. Not only is it a major financial investment, but the location of your home determines your community, neighbors, and perhaps where your children go to school. Becoming a homeowner isn’t for everyone—but if it is one of your financial goals, I recommend that you begin preparing as far in advance as possible.

In this post, you’ll learn 7 key home-buying tips to get prepared, save money, and become a happy homeowner. Plus, I’ll cover some generational trends and challenges that Millennials, Gen Xers, Baby Boomers, and the Silent Gen may face when buying a home.

7 Tips for Buying Your First House

1. Know when to stop renting. 
2. Focus on building credit. 
3. Check into first-time home buyer programs. 
4. Estimate how much down payment money you’ll need. 
5. Save your down payment in the right place. 
6. Get preapproved for a mortgage. 
7. Be a savvy negotiator.

Generational Trends for Buying a Home

According to a National Association of Realtors study, 36% of home buyers are Millennials or Gen Y, who are age 37 or younger. And 65% of these buyers are first-timers who are also married couples. They’re increasingly buying single-family homes in the suburbs.

Gen X buyers, who range in age from 38 to 52, make up 26% of home buyers. The NAR report shows they are ethnically diverse, in their peak earning years, and purchase more expensive homes compared to other generations. They’re the most likely to choose homes based on convenience to work and the quality of school districts. 

Younger Boomers from age 53 to 62 make up 18% of home buyers. They typically move for a job or to downsize after their kids leave home. Older Boomers in the 63 to 71 age range make up 14% of home buyers. They’re more likely to move the longest distances for retirement, to downsize, or to be closer to family and friends.

Those age 72 to 92 are part of The Silent Generation and make up just 6% of home buyers. Most have already retired and have the lowest income compared to...

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