Don't Let Common Challenges Keep You From Buying A Home
The Millennial home buyer, otherwise known as a consumer 18 to 34 years old, makes up about 42% percent of home buyers today. The millennial generation is making a huge impact on the housing industry however it also faces unique challenges when buying a home.
As a Millennial, you grew up during the Great Recession (December 2007 – June 2009) and there is a good chance you were affected by high unemployment, student loan debt and tight credit standards and regulation.
Don’t let these challenges cause you to shy away from buying a home. Times have changed and buying a home today is becoming easier and more affordable.
The Millennial Home Buyer Challenge
Young adults today are in excellent shape to buy a home. By historical standards, mortgage interest rates are extremely low and home values continue to appreciate (especially in Colorado).
Here are some essential tips for Millennial's beginning their journey towards home ownership:
Don't Wait Too Long
Unlike their parents, studies show that Millennial's tend to rent for longer periods of time before becoming a home buyer. While waiting can certainly make sense in some situations, it can also do more harm than good.
Why is this? Mortgage interest rates are on the move and so are housing prices.
According to Freddie Mac, 30-year fixed interest rates have increased to an average of 4.32% percent, up a half percent over November’s 3.77% percent average rate.
On a $200,000 home with a 5% five percent down payment, your mortgage payment would be $54 more per month. From a longer term perspective, that means you spent over $3,200 more than those who purchased just a few weeks earlier.
To protect against further rate increases, it could be wise to find a home and lock in your rate soon. Call me today, 303.668.3350, for a free prequalification to see how much you can afford.
Find The Right Real Estate Agent
Although under 30's are great at getting things done with very little help, an experienced real estate professional can make finding and buying the right home easier, especially for a first-time buyer.
After all, why not hire a person who has more education and expertise in real estate than you? As Henry Ford once said, when you hire people who are smarter than you, it proves you are smarter than they are.
The right agent offers invaluable neighborhood knowledge and is up-to-date on an area's market conditions and potential as an investment.
Good agents guide you through the process of negotiating a price, securing other concessions (like a home warranty), and sorting out who pays which closing costs.
Call me today and I would be happy to refer you a world class agent!
Don't Assume You Can't Buy A Home
A common challenge for many young college graduates is having sizable student loan debt and little savings. As such, you may assume you don’t have enough cash or income to afford to purchase a home.
Some Millennial's are waiting longer than their predecessors to purchase their first home.
Recent studies, however, show that you’re likely to pay more in rent than you would for a mortgage payment.
Contrary to popular belief, you don’t need 20% percent down to buy a home – actually, you don’t even need five percent.
Even if you don’t qualify for 100% percent financing, you may qualify for 95% to 97% percent loans and many programs allow some or all of your down payment to be borrowed or gifted if it comes from an acceptable source.
Read more about the Metro Mortgage Assistance Plus down payment grant. This is grant money that does not have to be paid back!
Over Analyze and You Could Paralyze
Your parent’s generation did not have access to the seemingly unlimited amount of data. You, however, can find everything you need with a quick text, email or Internet search.
It is estimated that 9 of 10 home buyers implement online resources for home buying education however a barrage of online information can have its downside. Sometimes too much information can cause uncertainty.
Do ample online research and seek advice from family and real estate professionals but don't get overwhelmed and let a good deal pass you by.
With today’s technology and the guidance of a trusted real estate agent, the Millennial home buyer has the tools to successfully navigate the home buying process.
Call me today 303.668.3350 for a prequalification, we can finish in minutes and I will be sure to pass along the contact information for a few rock star real estate agents!
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Nations Reliable Lending, LLC
Colorado's Mortgage Expert
NMLS: 253799 / NRL NMLS: 181407
Regulated by the Division of Real Estate
Scott Synovic is a top performing mortgage loan originator providing superior levels of service and satisfaction to clients and business partners in Colorado - www.scottsynovic.com NMLS #253799 Fairway Independent Mortgage Corporation #2289