If you have trained your sights on a San Francisco home as your first real estate purchase, others may say that it’s too ambitious a goal.
Fret not! With the right resources and support, it’s possible to find your dream home in the Bay Area. Here’s a short guide to help you with that.
Check how far your salary can bring you
The vibrant communities and amazing job opportunities are some of the factors that convince people to buy a home in the San Francisco Bay Area.
Before hopping onto the San Francisco real estate bandwagon in search of your next residence, ask yourself this: does the salary math stack up well?
Consider the statistics: With a 30-year mortgage and a 20% down payment on a Bay Area home that costs about $800,000, one needs to be earning upwards of $150,000 per year.
Should you need to boost your earning potential, there are a number of options to try. For instance, pursuing that big promotion you’ve been eyeing for some time now is a good place to start. Additionally, you can also seek out loan programs specifically designed for first-time home buyers.
Improve your credit score
To get the best interest rates from mortgage lenders, it pays to have an above-average credit score – preferably a FICO that’s 700 and above.
Bay Area millennials, for instance, have great credit scores and can put in over $140,000 in down payment on average. Combining figures from San Francisco, San Jose, and San Diego, the average credit score among millennials is approximately 710.
That said, take the time to learn the best practices in maintaining or boosting your credit score (e.g. using 30 percent or less of your credit limit).
On the go or settling down?
Life for those in their 20s to early 30s is filled with constant change. If you are in this age bracket, you could land a job that involves a lot of traveling. A family emergency may also force you to rethink where you should settle.
While it’s impossible to predict what will happen years into the future, it’s wise to invest in a home only if you see yourself living in it for a good number of years.
If you’re anticipating rapid and unexpected changes after your move to San Francisco, a starter home that meets your minimum requirements may be ideal for you. Alternatively, you may be better off renting until such time that your lifestyle brings you to finally plant your roots in a location you desire.
Manage expectations
Millennial homebuyers, especially the ones who haven’t experienced living in their very own house, should set realistic expectations for their first home. Is a basement or balcony absolutely necessary? Will a fancy kitchen truly provide an opportunity to hone your culinary skills?
Find the home that ticks off all the items in your home must-have checklist. And check it twice! You may have been dreaming of having spacious yard space. But if life’s obligations prevent you from maintaining it, then scratch it off your list.
Need some assistance in choosing The One among the wonderful homes for sale in San Francisco? I can help you get the best deal based on your budget and needs. Call me, Amir Hardy, at 415.602.0570 or send an email to amir.hardy@compass.com.