In the United States, it is legal to buy a house without a co-signer at the age of majority, which is 18 years old in most states. Reaching the age of majority empowers individuals to sign legal agreements and complete real estate transactions. Before reaching the age of majority, individuals can still buy a house with the aid of a co-signer. The practical side of buying a house young is often the more limiting factor. Read on to learn the signs of being ready to buy a house, as well as the pros and cons of owning a home.
Signs You Are Ready To Buy A House
What age you can legally buy a house is fundamentally less important than the other signs you’re ready to buy. Here are a few things you should have that show you’re ready to buy a home:
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Pros Of Buying A House Young
If you’re in the right place financially, there are several positives to buying a house young. Here are some of the key ones:
Cons Of Buying A House Young
Along with the pros, there are some cons of buying a house young. The truth is that it’s not right for everyone. Review these cons before making a decision:
At What Age Should You Buy A House?
In 2018, the median age of a first-time home buyer was 34, according to the National Association of REALTORS® Buyer and Seller Survey. As of the fourth quarter of 2020, the U.S. Census Bureau reports that 23.8% of people under the age of 25 owned homes. For the ages of 25 – 29, that number climbed to 34.8%. Between the ages of 30 – 34, 49.2% of people owned homes. As the ages go up, homeownership rates climb. Whether or not people your age own homes shouldn’t be what determines if you decide to purchase one yourself. If you’re in the position financially to buy a home at a young age, you need to think about what that means for you. It may make other things less feasible, like traveling. On the other hand, mortgages can be cheaper than rent. If you’re ready for the commitment, owning a home young can be a huge asset. Bucking the trend could put you in a great place to establish your home, which could be a powerful investment for you.
The Bottom Line
No matter your age, you should only judge whether you’re ready to begin the home buying process by your specific financial situation and the current housing market. While the minimum legal age is 18, other factors often determine whether you’re ready. Your finances need to be secure, your income stable and you should be sure you’ll be staying in the area where you’re buying the home. Want some personal guidance? Speak with a Home Loan Expert today.
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