Record-low interest rates are drawing all types of buyers to the housing market, but it is especially appealing to millennials who are looking to reap the benefits of homeownership. This generation is now the fastest growing group of home buyers. In August, the Wall Street Journal reported that millennials now account for over half of all new home loans.
In the past year, we have seen an influx in homeownership by older Millennials, and it is predicted that this generation will continue to be a driving force in the housing market over the next five years. The shift in this group from renting to buying is underway as many young adults are looking to grow their wealth through homeownership.
In true millennial fashion, this demographic is relying heavily on technology during their home search. Digital advances have changed how real estate is done, with millennials typically using their mobile devices to search, view properties, and communicate with real estate agents.
While many millennials are becoming homeowners, some do not feel confident looking ahead at the home-buying process because of the myths out there about homeownership. One such myth is the idea that they need to pay off their student loans before they purchase a home. The fact is that there are updated guidelines that make it easier to qualify for a mortgage with student loans. Many factors determine your eligibility for a mortgage, and although student loans may affect the home-buying process, they don’t need to keep your dreams of being a homeowner on hold. A Wisconsin Mortgage Corp. Loan Officer can help you find home-loan options that can work for you.
Another misconception is that you need to have a 20% downpayment. Times have changed, and there are loan programs designed with first-time home buyers in mind. The right amount for a down payment depends on your current savings and your home-buying goals. Your Wisconsin Mortgage Corp. Loan Officer can help you look into mortgages that offer a wide range of down payment options, some as low as 3%, and select programs may offer a no money-down option.
It is important for first-time millennial home buyers to get familiar with the home-buying process. With so many buyers actively searching for homes and so few houses for sale, it’s more important than ever to work with a knowledgeable Shorewest, REALTORS® professional to help you navigate the market.
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