Following the end of the recent recession, one age group was hit particularly hard: Millennials.
Millennials are consumers between the ages of 18 and 34 years old. In the past, this age group accounted for a large portion of housing market activity. However, in recent years, the majority of these individuals were forced to put their dreams of homeownership on hold.
While waiting on the sidelines, Millennials worked to improve their financial standings. As a result, many of them plan to buy homes in the near future. A recent survey conducted by Trulia reveals 72 percent of Millennials feel owning property is still a major part of the American Dream. Meanwhile, of these respondents 93 percent hope to buy a home in their lifetime.
“Millennials have been shaken, not scarred by the housing bust,” said Trulia chief economist Jed Kolko. “Nearly all of them want to own a home someday, if theyâre not homeowners already. But many of them think todayâs low prices and low mortgage rates will last. They may be in for sticker shock if the cost of homeownership has returned to normal levels by the time theyâre ready to buy.”
Basic steps to homeownership
No matter how old a prospective homebuyer is, they need to fully understand the basics of preparing for the process.
The first step is examining your mortgage options. The exact terms you receive will be determined by factors, such as your credit standing, income and down payment size. Luckily, prospective borrowers who may be struggling in one of these areas have options, such as an FHA mortgage loan.
Start looking at propertiesÂ
Once you get a feel for how much home you can afford and potential mortgage options, it’s time to start looking at properties. But remember, during this process you need to be realistic about your selection.
It may help to make a list of must-haves. However, you need to consider that luxury amenities, such as swimming pools and master suites, probably shouldn’t be that high on the list, especially if this is your first home.
Instead, think about the size of the property as well as the number of bedrooms and bathrooms. In addition, think about your long-terms goals. If you plan to start a family in the near future, it would be beneficial to purchase a home with spare bedrooms so you have room for your growing household.
Freedom Mortgage is a leading lender in all 50 states and is eager to assist you in qualifying for a mortgage. Checking out Freedom’s home mortgage rate calculator is just a stepping stone on your journey to becoming a homeowner.
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