What a Bay Area homebuyer needs in their 20s doesn’t always synch with what is required in their 30s and 40s. What you expect from your Danville home will change as life evolves. While it is impossible to predict life’s major or minor events, it is safe to say that real estate and mortgage considerations change with age and lifestyle considerations. These specific tips can help you make informed decisions about Bay Area mortgages and home purchases in life’s different age groups.
Real Estate Advice for 20-Somethings
As a first-time buyer in the San Ramon home market, it’s important to complete a preapproval early to determine what types of loans are available. It often makes sense to evaluate a few loan options, while considering the length of time you are likely to own the home. Fixed rates are the most popular, but if you plan to keep the home for less than 10 years, it may make sense to consider an adjustable-rate mortgage when buying a home.
You should consider a Bay Area new-construction home. New homes need much less maintenance and should not need any major improvements for years to come. They also are more energy-efficient and save on your energy costs. Plus, many builders offer help with closing costs and have different financing options with their preferred lenders. But there are other benefits too. Your homeowner’s insurance could be cheaper as well.
Consider Lifestyle in Your 30s
Upgrading to a larger home is often a priority for 30-something Alamo homebuyers. Beyond home size, consider school district, quality of life, and access to major routes of transportation and amenities. Use caution when buying bigger, just because you may be able to afford more now doesn’t always make it the correct decision for your budget.
Time your home sale with your next Bay Area home purchase. Buying a home and then selling another at the same time can be a daunting task. Timing is important, and having a seasoned Danville real estate agent will prove to be valuable here. Often, they will negotiate on your behalf to give you time to vacate your home after selling. This certainly makes the moving process a little easier.
Reassess Your Needs in Your 40s
Focus on your lifestyle, not your age. Buyers in their 40s have tough decisions depending on where they are in their stage of life. Your real estate decisions in your 40s should reflect your needs right now. If you have teenagers, consider a smaller property, as you may be an empty nester sooner than you think. Should you have smaller children, then a larger property is still a priority.
Don’t assume it’s too early to downsize. A lot of people this age are busy, enjoy traveling, and don’t want to be consumed with a lot of home and yard maintenance. Generally, when people downsize, their mortgage payments are lower and so are their monthly expenses. This frees up money for lifestyle upgrades, traveling, and saving for retirement. Get serious about paying off that mortgage. Shorter-term loans tend to be more appropriate for those in their 40s and beyond when major life expenses are behind you.