Buying a home is one of the biggest investments anyone makes. There are financial hurdles involved that make potential buyers jump through all kinds of hoops. There are myths and all kinds of preconceived notions about what buying a house actually entails.
It’s important to touch on the fact that there certainly are obstacles which make buying a house difficult for the Millennial generation. Finding affordable housing throughout the country can be difficult, especially with a low inventory in a feasible budget of that coveted $200,000-$300,000 bracket. Finding jobs that provide sufficient income for monthly payments can be difficult, too. These are realities facing Millennials.
“The single biggest impediment right now is affordable housing, finding homes that are affordable to Millennials,” says chief economist Svenja Gudell of Zillow.
Here’s the catch: many Millennials aren’t aware of the options that exist for them, especially in terms of financing options.
Millennials Want to Buy a House
Surprise!
Though there has been a general assumption that Millennials don’t want to buy houses, we’re starting to see that this isn’t the case. They just need help sorting through the murky waters of home hunting, mortgage must-dos, and financial assistance. Buying a home increases your control over your living space, gives you access to nicer homes, and helps establish a sense of privacy. Not to mention, it’s an investment that can help you create lasting wealth as you get older.
Courtesy of Home Choice Warranty
“There’s a strong indication millennials want to become homeowners, which is quite different from what we’ve heard,” states the Mortgage Manager of NerdWallet, Chris Ling.
How Can Millennials Buy a House?
Oh, a $250,000 question. How can Millennials buy a house? Taking advantage of different financing options is one avenue this generation can pursue, especially now that we’re aware it’s not that this generation doesn’t want to be homeowners.
Buying a house may be more of a possibility than you know. Familiarizing yourself with down payment options can broaden your home-owning horizons. Let’s take a look.
While putting 20% down on a house is nerve-wracking (do you really need to put down 20%?) there are lower down payment options. Saving for a down payment is one of the biggest obstacles of buying a home, especially for the Millennial generation. However, there are lender options that range from 3%-6%. Kind of mind blowing, isn’t it.
Real Estate Experts has your guide to down payment assistance programs. Grants, tax credits, and second mortgage loans are all options you may qualify for.
There are also other options today, even 100% financing depending on the situation.
Resources for Millennials Buying Houses
So, you’ve caught on to the idea that you’re not too young to buy a house. We’ve covered that there are ways to get around the “down payment doom”, which is to say that you’re aware there are financial assistance programs and different financing options. Needless to say, it’s time to provide some resources for Millennials buying houses.
Zillow took the needs of Millennial buyers to heart, creating RealEstate.com. This website aims to “help Millennials find homes they can afford.” We’re a fan of this noble cause at Real Estate Experts, but we also know that a trusted and local real estate professional can help you find the perfect home for you in a way that house hunting online can’t, even with great tips. With that being said, you still should check out RealEstate.com for their “all-in monthly price” for the listings. This neat tool helps you see the final calculated monthly cost of property taxes, HOA fees, homeowner’s insurance, and more.
Real Estate Experts
We work with a number of excellent lenders and would be happy to introduce you to any one of them. We have built a team loaded with the experience you need to help through the home buying process. We are all very technology oriented too!
Interested in kick starting the house hunting process? Don’t hesitate to reach out! We can’t wait to help you find the perfect home in the Triangle area, or assist you in selling your property. We’d love to hear from you. Contact us today at 919-813-6449 or send us an email to [email protected]. Visit us online at realestateexperts.net.