Responsible Young Homebuyers can Gain Big in Current Market

May 17, 2012

Many advantages for young consumers to buy a home and increase their FICO scoreSometimes it seems like the deck is stacked against

first time homebuyers. Young consumers usually don’t have as long to establish deep savings that many banks want for down payments and haven’t had as much of a chance to build up a high credit score. While it may seem counter-intuitive, this can mean that a home purchase is a wonderful opportunity that young, responsible people should seize while the market is favorable. Equifax expert Janet Dedrick explores how there are advantages to being a young buyer in her article, “

Credit Trends: Does Age Factor into Your Credit Score?

While younger buyers are just starting their financial lives and may have a lower

FICO score, the environment has rarely been better for them to get involved with homebuying. It’s true that younger consumers have a shorter payment history, but taking advantage of opportunities still available with the FHA means that loans can be secured with credit scores that are lower than average. FHA loans also require a lower down payment. Along with the lower interest rates and amazing opportunities with reduced prices, it has rarely been a better time to be in a position to be

buying a home.

A responsible young homebuyer can also use this as a chance to grow a strong credit history. A mortgage paid on time on a starter home is an excellent way to make a solid foundation of credit that can make future endeavors easier. It requires discipline to avoid debt and is not for the impulsive, but it can be an excellent strategy with the improving financial outlook.

For more information about real estate, credit, retirement and other

personal finance advice, be sure to see the Equifax Finance Blog.

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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