Home ownership is on the to-do list for many young adults, but sometimes it’s hard to know exactly how to get there. From an understanding of home buying process to pre-approval and pre-payment support options, uncertainty along the way may ultimately hold some buyers back.
Today there are more than 75 million Millennials and 67 million Gen Z’ers in the United States, making up a significant number of current and future home buyers. According to recent Fannie Mae survey of more than 2,000 of these individuals:
“88% said they were sure they would one day achieve home ownership.”
In addition, the survey also reveals that for younger generations the incentive to own a home may be more emotional than financial compared to previous generations:
- <50% say they want to use their home as an asset
- 78% think it is the best way to live as they want, without restrictions
- 80% think home ownership is the best way to do it on their own
Whether homeownership goals come from the heart or are driven by financial aspirations (or perhaps both), the obstacles standing in the way should not cling to these dreams. The same survey also reveals two key roadblocks for potential buyers. Fortunately, they are both easily overcome by the skill and reliable advisors leading. Here’s a look at these two challenges today’s home buyers are buying:
1. 73% of future homeowners are unaware of low down payment mortgage options
For those who want to buy a home, low down payment options are essential to provide one sooner rather than later, especially considering the debt of many younger adults. Fannie Mae also notes:
“Among the challenges they face is an unprecedented amount of debt, along with a lack of understanding of the mortgage process and their own purchasing power. Debt, in particular, creates many obstacles such as limited savings and fear of accepting more debt.”
Today is more than 2,340 down payment assistance programs available nationwide to help alleviate this pressure. Understanding what’s out there and the options available can help many buyers become homeowners faster than they thought possible. In such a year, with a record low mortgage Estimates gaining their footprint in the history books, being able to take advantage of the opportunity buyers have now is essential for a long affordability.
2. 64% of buyers expect lenders and other real estate professionals to educate them about the mortgage process
Although many people love a quick search on the internet to find immediate answers to their questions, it is not the only way that younger generations want to consume information or build their knowledge base. As the survey mentions, trusting professionals helps them learn what it takes to realize their dreams is certainly also on their wish list.
If you ever aim for home ownership, it may be closer than you think. Let’s connect so you can learn about the process and get the necessary guidance to carry it out.
Content previously posted in Keep Current Things