Home Buying For Millennials
Buying a home isn’t an easy task, especially when someone's buying their first house. The youngest millennials, around 25 years old, are now entering the housing market as first time home buyers. Older millennials entered the housing market years ago, and are now passing up both Baby Boomers and Gen-Xers. This may come as a surprise, but millennials are also about to overtake Baby Boomers as the largest adult generation. This will affect a lot of the economy, including the housing market. Buying a home is an expensive investment, but we at Transforming Property Solutions are here to help! Read on for tips on Home Buying For Millennials.
Experience is important.
As we said previously, most, if not all, millennials are first time home buyers. It’s very important for millennials to work with experts who know the housing market enough to get a great home for a buyer. Nearly 90% of millennial homebuyers use real estate experts to find and purchase their homes. This can also lessen the overall stress of buying a home. We at Transforming Property Solutions offer services for interested homeowners! A good expert is one who takes the time to listen to your needs and answer your questions and is more concerned about your future home.
Buying (and owning) a home is expensive.
It can take years to save enough money to buy a home. One of the biggest challenges for millennial homebuyers is student loans. More than two-thirds of college students graduate with student loans, and one out of four American adults is currently paying off their student loans. The national student loan debt in the United States in 2019 is between $902 Billion and $1 Trillion, with around $864 Billion in Federal student loan debt. In 2019, more than 42 million student loan borrowers have a debt of $100,000 or less.
Consumer debt has also affected the home-buying dream of millennials. Second to student loans, the two expenses that delay saving for a down payment on a house are credit card debt and car loans. Buying a home is the most expensive purchase many people will make, so make sure to be debt-free.
Most homebuyers don’t pay cash for their first home; 98% of millennials use a mortgage. It’s important to have a strong down payment so you can have a lower interest rate and pay off your mortgage faster. Try to avoid buying a home with a no money down home loan. Advantages do include lower borrowing costs and lower interest rates. However, the lower your down payment is, the more a lender considers you a risk. This can lead to worse rates, and you could lose money in the end.
Try to get preapproved for a home loan. This means that your lender has looked over your finances and decided that you can cover the down payment and the mortgage payments of a house. This will help you when you’re in the process of buying your home.
Don’t lose patience when saving money for your future home! Plan how you will finance the big purchase, know how much house you can afford, and again, don’t lose patience. With careful planning, it can take less time than you think.
Finding a home can be tricky.
Before buying a home, you have to find the perfect one first. In the past few years, the housing market has become very competitive between buyers. Baby boomers have been downsizing into the starter homes that millennials are trying to buy. You have to stand out in a competitive market, against buyers with bigger budgets and more home buying experience, or even other millennials.
Decide what you want before you start your house hunting. It can be easy to get distracted by the square footage of a property, or how many bedrooms and bathrooms it has. Also, keep in mind the location you want to be in. Decide what your budget is and what you absolutely need in a home.
Online real estate sites and apps have simplified the process, but these can easily be deceiving. Don’t rely on a property’s photos, and always look at the house in-person. Photos can show the property in a better light than it actually is in, with wide angles making a room look bigger, editing, and a very clean house. Remember, you can also change the way a home looks with furniture and decor.
Finding an affordable home might look daunting, but the housing market is beginning to slow down. Be patient when searching for a home. Don’t feel forced to buy a home that’s out of your price range. Stick with a plan, and do everything you can to keep the entire process going. It can be very time-consuming, but it’s necessary in a competitive market. Act decisively and smartly. Try not to keep a motivated seller waiting too much on an offer or anything else.
When you find a home, be thankful with the seller. Send a handwritten letter to stand out against other buyers. Selling a home can be very emotional for homeowners, and a personal letter will be appreciated.
Buying a home as a millennial doesn’t have to be complicated with our tips! Transforming Property Solutions is located at 223 W 3rd St, Sanford, FL 32771. For more information, investors and realtors are encouraged to call 407-375-2317 or visit online at www.transformingpropertysolutions.com