How to move out of my parents’ house & get my own mortgage

You’ve decided that it’s time to get out from under your parents’ roof. It’s an important step that almost everyone takes when they move towards adulthood.

Did you know that you don’t have to go straight from your parents’ home to renting? If you have a credit history, a job, and some savings, you may be able to own your own home.

Continue reading to learn what you can do to go from your parents’ home into your own with your own mortgage. You can also apply for a pre-approval to get a better idea of where you stand and show home sellers and real estate agents that you’re serious.

How to move out of my parents’ house?

Moving out of your parents’ house is a significant step towards independence. Here are some practical steps to help you navigate the process:

1. Financial Planning

Budgeting: Create a budget to understand your monthly income and expenses. Include rent, utilities, groceries, transportation, and any other regular expenses.

Emergency Fund: Save some money for unexpected expenses. Having an emergency fund provides a financial safety net.

2. Finding a Place

Determine Your Needs: Decide on the type of housing that suits your lifestyle and budget. Options include renting an apartment, sharing a house with roommates, or even considering transitional housing.

Location: Choose a location that is convenient for work or study, considering factors like commute time and safety.

3. Employment or Income Source

Job Search: Secure stable employment or a reliable income source before moving out. Make sure your income covers your living expenses.

Side Hustles: Explore additional ways to supplement your income, such as freelancing or part-time jobs.

4. Legal and Administrative Considerations

Utilities and Services: Set up essential services such as electricity, water, internet, and gas in your new place.

5. Packing and Moving

Declutter: Take only what you need to your new place. Decluttering helps streamline the moving process.

Packing: Pack your belongings systematically, and label boxes for easy unpacking.

Moving Assistance: If possible, seek help from friends or family, or consider hiring professional movers.

6. Emotional and Social Support

Communication: Discuss your plans with your parents and ensure a smooth transition. Keep open lines of communication.

Social Network: Build a social support system in your new location. This can include friends, neighbors, or local community groups.

7. Setting Up Your New Home

Furniture and Essentials: Prioritize essential furniture and items. You can gradually add more items as needed.

Groceries and Supplies: Stock up on basic groceries and household supplies for the initial period.

8. Self-Care and Well-Being

Healthcare: Ensure you have access to healthcare in your new location. Update your address with relevant healthcare providers.

Self-Care: Moving can be stressful. Take care of your mental and physical well-being during this transition.

9. Continuous Learning

Life Skills: Embrace the learning curve. Take this opportunity to develop life skills such as cooking, budgeting, and home maintenance.

10. Legal Documents

Identification: Ensure your identification documents (ID, driver’s license, etc.) reflect your new address.

Insurance: You’ll need homeowners’ insurance to protect your belongings and property. Make sure you’re sufficiently covered.

Moving out is a big step, and it’s normal to feel a mix of excitement and nervousness. Planning and preparation will help make the process smoother. Remember, it’s okay to ask for help and take things one step at a time.

How much should I save before moving out?

Before you jet off to your own place, figure out what it’s gonna cost you each month:

Mortgage: How much for your sweet new pad?

Utilities: Think electricity, water, internet – all the good stuff.

Groceries: Don’t forget to eat, my friend.

Getting Around: Whether it’s a bus pass or gas money, factor in how you’re getting from A to B.

Now, upfront costs – the real wallet drainers:

Moving Day Costs: Whether it’s a moving truck or pizza for your pals helping out, there’s a cost.

Setting Up Your Home: Getting utilities hooked up in your name might need a bit of cash.

And of course, stash away some emergency funds – life likes to throw curveballs. Next, think about the stuff you need in your new spot:

Furniture Basics: Beds, a sofa – whatever’s essential.

Spread It Out: You don’t need everything right away. Buy the importantstuff gradually.

Make sure you’re earning enough to cover all this. A steady job or income is your golden ticket. If you’ve got debts, keep them in mind, too. Also, check out the living costs in your dream spot – some places hit harder on your wallet.

How can I save up to buy a home?

First off, figure out how much you need for your dream home – down payment, closing costs. That’s your goal.

Now, peek into your spending habits. Where’s your money going? Cut back on the non-essentials like those impromptu coffee runs or the third streaming service you barely use.

Next, set up a separate savings account just for your home fund and automate the savings game. Treat it like a monthly bill. If you can, snag a side hustle to bring in some extra cash, and don’t sleep on employer benefits – if they’re matching contributions, jump on that.

Keep an eye on your bills and stash away unexpected cash like bonuses or tax refunds into your home savings account. Also, keep your credit game strong. It’s a journey, not a sprint, so stay patient, stay informed about the real estate scene, and celebrate those little wins along the way.

How can I save up to buy a home?

The timeline for a millennial homebuyer to get a mortgage can vary widely based on several factors. Individual circumstances, financial preparedness, and local real estate market conditions will play a role in your homebuying journey. However, a general timeline might look like this:

1. Financial Preparation (6-12 Months):

Build Credit: Establish and maintain a good credit score. This may take a few months to a year, depending on your starting point.

Save for Down Payment and Closing Costs: Begin saving for a down payment and associated costs. The time required depends on your saving capacity and financial discipline.

2. Research and Education (2-6 Months):

Understand the Homebuying Process: Educate yourself about the homebuying process, mortgage types, interest rates, and associated costs. This can take a few months of research.

3. Pre-Approval (1-2 Months):

Get Pre-Approved: Work with a lender to get pre-approved for a mortgage. This involves a comprehensive financial review. The process may take a few weeks.

4. House Hunting (Variable):

Search for a Home: The time it takes to find a home varies based on the local market and personal preferences. It might take a few weeks to several months.

5. Offer and Closing (2-3 Months):

Make an Offer: Once you find a home, the offer and negotiation process can take a few weeks.

Closing Process: The closing process typically takes 30 to 60 days, during which paperwork is finalized, and the sale is completed.

6. Total Timeline:

Overall Timeframe: In total, the entire process from financial preparation to closing may take anywhere from a few months to a year, but this is a rough estimate, and individual experiences may vary.

Flexible Timeline: Be flexible and patient. Factors such as the housing market, personal financial situation, and unexpected delays can affect the timeline.

Local Real Estate Market: Local market conditions play a significant role. In a seller’s market, where homes sell quickly, the process may be more expedited.

Student Loans: If you have student loans, consider how they may impact your ability to qualify for a mortgage and plan accordingly.

Job Stability: Lenders often consider employment history and stability. A consistent job history can strengthen your mortgage application.

Remember, this is a general guideline, and each person’s journey is unique. Consult mortgage advisor and real estate pros to navigate process effectively based on your situation and local market.

How can I figure out how much home I can afford?

To figure out how much house you can afford, calculate your total income and know your debt-to-income ratio (DTI). Aim for a monthly housing cost that fits comfortably within 25-30% of your gross income. Factor in additional costs like property taxes, insurance, and potential HOA fees.

Consider your down payment, loan term, and interest rates to calculate the maximum loan amount. Get pre-approved for a mortgage to have a clear idea of your budget. Maintain an emergency fund, and consult with professionals like mortgage advisors to ensure informed decisions.

Stay within your budget when shopping for homes, considering long-term goals and potential future changes in income. Striking a balance between homeownership and overall financial well-being is key.

How can I start my journey to a mortgage?

If you’re ready to get started on your path to moving out and getting your own home, we can help you. Start by getting a mortgage pre-approval to know how much you’ll probably be approved for.

Once you have your pre-approval in-hand, real estate agents and home sellers will take your offers more seriously. Apply today and get out of your parents house and into your own.