In the second quarter of 2018, Millennials began buying homes in a big way. Despite the commonly-cited hurdles that include student debt, irregular and gig income and the high cost of living, today’s Millennials are finding their way to home ownership.
A report from the US Census Bureau shows that home ownership rates among people aged 35 and under jumped 3.4% between April and June of this year. The Ellie Mae Millennial Tracker shows the average age of millennial borrowers is 29.
What’s driving Millennials into the market? A larger percentage of them are reaching the point in their lives where it’s appropriate to buy a home. They are settling down, getting married and having families.
“Most Millennials are buying a house because there are major changes happening in their lives such as starting a family, getting a new job, or because they’ve decided that they want to build equity and stop renting,” said Ellie Mae Executive Vice President of Corporate Strategy Joe Tyrrell.
Resource Financial Services is here to help Millennials on the road to home ownership. We understand that buying your first home can be a little intimidating. And no matter how many times you ask for advice from parents, family members and friends who are experienced homebuyers, there will still be questions.
That’s why we believe meeting with one of our reputable and experienced mortgage bankers should be your first step. With our guidance and knowledge, you can find a home you can truly afford with a mortgage that works for your budget.
Five Simple Steps to Home Ownership:
One: Make the call. Pick up the phone and call a mortgage banker at Resource Financial Services for step-by-step guidance on the home-buying process. There is no charge for a phone call that can make all the difference in helping you understand your options and what you may be able to afford.
Two: Get pre-approved. Before looking at the first house, your mortgage banker can pre-approve you for a loan and explain the customary closing costs and financing fees. This will give you an accurate picture of how much home you can truly afford and help you narrow down homes based on that amount.
Three: Begin the house hunt. Your pre-approval will help you sort by price, identify neighborhoods and find your dream home faster. It will also give you an edge when you make an offer in a competitive seller’s market.
Four: Make the offer. Your real estate agent (and we highly recommend working with one) has extensive knowledge and experience on comparable home transactions and can offer the best strategy for the home you’re interested in. Your purchase agreement will note how much you’re willing to put down as a down payment. By the way it’s a myth that you need 20% as a down payment; the average down payment is only 10% and for first time homebuyers it’s even lower at 6%. Arrange to have the deposit held in escrow (not with the seller) so your money can be returned to you if the offer falls through.
Five: Close. Once an offer is accepted by both parties and signed, it becomes a binding contract. Your Resource Financial Services mortgage banker will help you understand the process and go over any documents you need to provide as well as any closing costs you owe so there are no surprises at closing.
Working closely with a reputable lender that offers competitive rates, a variety of products and the education is the best way to eliminate surprises and help you create a clear path to homeownership.
Resource Financial Services is here to make people’s dreams of home ownership a reality. That’s why our experienced mortgage specialists work hard to educate homebuyers about the wide variety of loan programs that can be tailored to meet individual financial needs. We offer quicker closings, same-day pre-approval and guaranteed lower rates.
Call us today toll-free at 888.500.6050 to speak with one of our mortgage bankers or visit us online at rfsmortgage.com to learn more.