Buying a Bay Area home seems out of reach so many Millennials, or so they think. Many are used to hearing that you need 20 % down in order to buy a home and with the rising rent rates in the Bay Area it is nearly impossible to save 20% to buy that Danville home. This is no longer the case! There are so many tips and new programs out there to help Millennials find a home within their budget in the Bay Area. Here are a few tips for all you Millennials out there!

Monitor Your Credit

The worse your credit, the harder it is to get approved for a loan and the higher the interest rate. When you are buying a Danville home or Pleasanton home lenders want to see that you are paying of your debt consistently and on time. If you are not sure what your credit is you should obtain your yearly free credit report from . It is crucial you have an understanding of where you credit score is before searching for that Bay Area dream home. If you credit score comes back and it is not where you want it to be there are many programs out there to help you repair your credit. Talk with your Bay Area loan officer to see what options are best for you.

Don’t Quit Your Job

What many Millennials do not know is that when trying to get a loan for a Danville home or Pleasanton home you need to have a 2 year work history in order to use your income to qualify. If you change jobs but are at a similar title then that should not be a problem but always check with your Bay Area loan officer before making the jump. If your goal is to buy a Danville home then you need to make sure you are taking the correct steps.

Down Payment: How Much Do You Actually Need?

Times are not the same as when your parents bought their San Ramon home and had to have 20 % down. If you have 20% then that’s awesome but for most that is unattainable. The Bay Area offers so many more options that require as little as 1% down! 1% that’s all! You could be on your way to buying your Danville home in no time! Call your local Bay Area loan officer to see what low down payment options are available for you.

Do You Know What Your Monthly Payment Entails?

When you go to your local Bay Area loan officer to get preapproved ask them to break down what your actual monthly payment entails. It is not simply just the principal and interest. It can include your monthly Danville homeowner’s insurance premium, homeowner’s association dues, and real estate taxes. Depending on the Danville home that you purchase and the program that you choose your monthly payments can incorporate more or less. This is why it is so important to have an experienced Bay Area loan officer on your side to break down and help you understand the whole process.

Getting Pre-Approved

Meeting with your local Bay Area loan officer will allow you calculate what your budget should be when searching for your Danville home. Your loan officer will be able to look at your current finances and debt while taking into account your credit score and your down payment to give you a purchase price that will work for you. This is when you might be asked to provide some financial documents such as federal tax returns, W2’s, and paystubs. Your Bay Area loan officer uses these to help calculate what you can qualify for.

Buying a Bay Area home is easier for Millennials than it was for their parents. Talk to your local Danville loan officer or Bay Area loan officer to help determine your home buying options.