In Blog Eric Frazier

If you’re young, especially around twenty, then you must give some serious thought on buying a house, instead of renting. You may hear a lot of opinions that renting a home might be a better choice than buying but real estate market has changed a lot through the years and homeownership isn’t that impossible option anymore. This kind of investment is a huge responsibility through the years and it would take a lot of money and effort but eventually you’ll be mastering your future away from your parents with a single investment. Your first adult paycheck possibly cannot let you proceed with that thought and you are going to realize soon enough that a mortgage is the only way in order to acquire a house. Taking a big debt like a mortgage seems terrifying at first but you must consider that tax deductions and positive credit history are some of the advantages coming along with homeownership.

Advantages from current real estate market situation

Using a mortgage loan is the most frequent way for buying a house nowadays. Despite that it’s a huge financial commitment the current finance situation makes loans and homeownership more appealing than ever. After the 2007 economic crisis banks are able to lend money with each other and the consumers on appealing rates and much lower interests. This situation made the thought of buying a house more attractive and the mortgage applications rise again.

What is like to apply for a mortgage in your 20’s?

Mortgage application is a long-complex and thorough procedure, requiring time and lots of documentations. Lenders will investigate your risk profile and decide through credit history if you’re a liable candidate of getting a loan. But if you are twenty years old, credit history might be a little limited or none, unless you’re having a student loan. A student debt will help you prove your credibility if you’re making you’re payments on time and increase your chances for a bank to trust you and proceed with a loan on your name. If you’re having a good credit score from your student loan then it’s highly possible to get more easily a mortgage with lower rates.

Key issues for homeownership at 20’s

Considering buying a house with a mortgage must be a calculated investment with planed moves and countable factors, for making the right decision. You must start imagine where do you want to leave in the next 10 or 20 years or be informed about monthly payments and compare them with your monthly earnings from your current job because a loan is a long-term commitment with high responsibility. Consider you stability of future income resources and measure them accordingly with your bills and obligations in order to define if a mortgage is a smart decision. Another key factor is what are your future life goals and activities because in case you want a family or relocation those are some of the most important factors that will define your loan decision. Beware that mortgage procedure is thorough and long-term and according documentations are needed and if you decide to proceed with a loan application you must have already consider all the above.


If you decide that you’re going to stay in a specific place for a specific time then owning a place than renting it, might be financially and emotionally fulfilling. A mortgage seems a huge responsibility and a long-term commitment and you must think very well your decision before getting it. As a starting point you can get advice from a professional about your unique situation and find out which option is suitable for your case. Especially if you are twenty years old and you’re at the rise of your career, the right counseling and assistance by your side, from a mortgage expert advisor, is essential in order to make the right future decision of homeownership.

Eric Lawrence Frazier, MBA 

President and CEO 

NMLS 461807  CAL BRE 01143484


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