Many Millennials want to enter the housing market, and even could enter, but are unaware they already hold the resources they need for homeownership
Up until down, Millennials have been trickling into homeownership, however they are waiting longer than previous generations to settle down and buy a home. Unlike previous generations, they have extra hurdles to overcome in their path to homeownership.
Millennials getting married later definitely impacts that timing. Also Millennials growing up during that subprime crash during 2005, ’06, ’07, ’08 – they saw what happened to their parents and/or family members and they have a bad taste in their mouth. I think the combination of both those things is making Millennials wait a couple more years than they would have done.”
And on top of that, the market is not pretty for first-time homebuyers right now with its fierce competition, inventory shortages and rising home prices.
Millennials are now entering a time when they are ready to buy a home, and simply don’t know that they can.
They just don’t know – that’s where your job, my job, all of our jobs is to help educate people and to help them know this is available today.
Most of them [Millennials] are on the fence not buying houses, and the big why behind that is they think they have to save up a lot more money for a down payment. When you tell them that a down-payment can be as little as two months’ rent, 96% of them say they’ll buy, and that’s a big difference.
He pointed out that, despite rumors that Millennials are not interested in buying a home, 91% say they do want to buy a home, a number that increases when told the down payment can be much lower than many think.
The study showed about 14% of potential homebuyers indicated they weren’t even familiar with the concept of a mortgage broker, while another 37% said they had heard of a broker, but didn’t know what they do.
The best place for a borrower to get a loan is a mortgage broker, and as you educate them and explain the options and the difference, they pick a broker 100 times out of 100.
Using brokers could give Millennials more flexibility and loan options to enter the market with 5%, 3% or even 1% down.
When Millennials realize that they have smaller down payment options, student debt also becomes much less of a problem. The greatest hindrance student debt creates is the inability to save up for a down payment. Once Millennials are educated on their options, that impediment is removed.
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