First Time Homebuyer Tips for Millennials and Gen Z

If you're searching for first time homebuyer tips millennials and Gen Z buyers can actually use, here's my honest take: the process is the same for everyone, but the starting points differ. Many first-time buyers I talk with carry student loans, rent in a high-cost area or are building credit for the first time. None of that rules out buying. It just means the order you do things in matters. Here's the plan I walk people through.

Before you look at homes, look at your own budget. The Consumer Financial Protection Bureau (CFPB) advises tracking your spending first so you understand what monthly payment is truly affordable. Pull three months of bank and card statements and sort the spending into fixed bills, flexible spending and savings.

Then add the costs that renters don't pay directly: property taxes, homeowners insurance, possible HOA dues, maintenance and mortgage insurance on some loans. My guide on whether now is a good time to buy walks through the full monthly picture.

How much do I need to save to buy my first home?

You need a down payment, closing costs and an emergency fund. The CFPB says most buyers need at least 3 percent of the price down and closing costs often run 2 to 5 percent. Your exact numbers depend on the loan, so I work them out with you.

Do student loans keep me from getting a mortgage?

No, but lenders count a monthly payment for them when they calculate your debt-to-income ratio. How that payment is figured depends on the loan program and on whether your loans are in repayment, deferred or on an income-driven plan.

Can I buy a home with a low credit score?

Some programs allow lower scores than others, and lenders can set their own minimums. I'd rather look at your actual report than guess, so send it over and we'll talk through your options.

Are there Texas programs for first-time buyers?

Yes. TSAHC and TDHCA both list homebuyer programs, including down payment assistance. Eligibility and funding vary, so check the agency sites and ask whether your lender participates.