Home Buying Tips For Millenials
Posted on: 27 April 2016
One of the challenges that millenials face when trying to obtain a home is that they often have a great deal of student debt. This may make lenders less willing to lend money to millenials unless they have been very consistent with their payments and have a very good debt-to-income ratio. However, there are some home buying strategies millenials use that can actually make them more attractive to lenders and increase their odds of getting a better home.
Take Advantage Of A Later Marriage
One of the advantages that millenials have is that they are willing to put off marriage, which eliminates wedding costs and leaves more money available to make a down payment on a home. Also, those who choose to delay marriage are often prioritizing their careers more, which often leads to a larger income.
View Your Home As An Investment
Many millenials view homes as investments rather than as permanent homes. They may purchase a home that is less expensive and that allows them to live closer to where they work. Choosing a home as an investment can be a smart move because home owners can make improvements to their homes and can also improve their credit worthiness and credibility to banks, increasing the likelihood of a better loan in the future.
Take Advantage Of The Great Deals Available
Now is a good time for millenials to purchase homes, because homes are at record low prices and interest rates are relatively low. However, it is more necessary for millenials to make a down payment on a home because fewer lenders are willing to offer 100% loans, and those who do expect nearly perfect credit. The greater you are able to increase your down payment, the lower your interest rate will be. However, if you are forced to make a smaller down payment than the recommended 20%, there are programs that will allow millenials to buy a home with as little as 5% down.
Don't Get Overwhelmed With Information
One of the challenges millenials face that older generations often didn't face is the overwhelming amount of information available. While information is useful when making a decision, it is important to make sure that the information does not cause you to stall when making a decision and miss out on opportunities. However, with a good realtor, it will be easier to navigate the market and find the perfect home for a millenial.
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