Before browsing listings or falling in love with a dream home, take a serious look at your finances and build a budget that reflects your current lifestyle and future goals. What can you realistically afford—not just in terms of the home's price, but in monthly costs over the long term?
Many first-time buyers qualify for more than they can comfortably afford and end up house-poor—spending so much on their home that there's little left for savings or daily expenses. To avoid this, aim to keep total housing costs under 28% of your gross monthly income. This helps ensure you have enough flexibility to handle both your mortgage and life's other financial demands without unnecessary stress.
Your credit score plays a significant role in the loan approval process. Lenders evaluate your creditworthiness to determine the likelihood of on-time payments.
To build or improve your credit:
Improving your credit can help you qualify for better loan terms—and ultimately save you money over time.
For many millennials, student loan debt is one of the biggest barriers to homeownership. But managing and reducing your debt can significantly improve your financial standing—and help you qualify for better mortgage terms.
Lenders evaluate your debt-to-income (DTI) ratio to determine how much you can reasonably afford to borrow. A lower DTI may help you qualify for a lower interest rate, higher loan approval chances, and more manageable monthly payments.
Start by taking a strategic approach:
Even modest progress can make a big difference in how lenders view your application. And with fewer financial obligations, you'll be better prepared for the ongoing costs of homeownership.
Saving for a down payment is still one of the biggest hurdles for first-time buyers. While the traditional 20% isn't always required—especially with today's flexible loan programs—having funds helps you make a more competitive offer and reduce your monthly mortgage payments. Both conventional and FHA loans offer low downpayment options (minimum 3% for conventional and 3.5% for FHA) and are ideal for buyers with limited savings. Explore your options early and take advantage of down payment assistance programs.
Standard Mortgage proudly partners with several programs that can help make homeownership for millennials more affordable:
A mortgage preapproval gives you a clearer picture of your price range and strengthens your position as a buyer. But it's not just about approval—it's also about finding the right loan and lender for your needs.
There are many loan types available:
Take time to compare lenders, interest rates, fees, and quality of service, ensuring you choose an option aligned with your financial goals.
You don't have to figure it all out alone. A mortgage expert can guide you through your financing options, answer questions, and help you feel confident at every stage.
At Standard Mortgage, we specialize in helping first-time buyers—especially millennials—secure the right home loan. We offer personalized support, competitive rates, and local expertise that makes all the difference.
Ready to Take the Next Step?
Connect with a Loan Officer today to explore your loan options and start your journey toward owning a home you love.