Removing The 5 Obstacles to Millennials Buying a Home

By
Real Estate Agent with Re/Max 10 New Lenox Illinois

5 obstacles to millennial home buying

The Millennial Generation is poised to become the next major demographic of home buyers, but studies have been showing that many of them are still hesitant about committing to the idea of homeownership.   My good friend Vincent Redd was just having a concersation with me about this.  Realtors and lenders alike are questioning what it is that could be holding them back, but some have started taking a closer look at possible factors.

1. Student Loan Payments

Many Millennials are currently either enrolled in college, graduating soon or already have graduated and are still on the hunt for a career. Either way, many of them will be or already are dealing with student loan payments, and with the job market as it currently stands, many Millennials are finding it difficult to focus on buying a home when they’re just barely paying their student loans.

Answer:  Vincent is poised to do a brief telephone conversation to help you determine how much mortgage will fit within your budget.  Don't let the fact you have this debt stop you from just inquiring.  It does not obligate you to do anything.  You will find the knowledged valuable to you as you plan your present and future.

2. No Credit History

Many Millennials are just starting fresh on their credit scores. While it is good that they’re working from a clean slate, it also means it will take time before they have a strong enough credit score to make a serious stand in the housing market. For them, obtaining a mortgage (even without student loans) is temporarily out of reach.

Answer:  Vincent is available to guide you on what to do to become credit worthy, and you may find this effort may take far less time than you fear.

3. Location, Location, Location

For one reason or another, millennials are flocking from the suburbs back towards the big cities hoping to build new lives there.

The problem with this is that cities that are popular with Millennials also have high costs of living and much higher prices for homes. As such, many of them find themselves stuck as renters, not knowing they can qualify for a mortgage and save money.

Answer:  Within every expensive market is a sub-affordable market.  It can be in the form of as-is distress sales, and/or considering a 2-4 unit building where Vincent can factor in the other rents earn as credit towards a mortgage.  Please call or text me anytime at 708-439-0165 to inquire about the benefits, and strategies of considering these purchasing obtions.

4. Ambiguity

The most difficult factor that is most likely keeping Millennials from exploring the housing market is their lack of wanting to commit to something. Many Millennials prefer having a flexible plan in life without the threat of being tied down in case some grand opportunity appears. This makes the idea of owning a home very unappealing to them and causes most to remain as renters.

Answer:  Case in point is my Daughter an NFL-Spouse who grew up in an over 5100 square foot home.  You can imagine how fussy her taste may be growing up in a home where her bedroom included a bonus sitting room and a full bath.  Plus, the NFL can at times be a temporary get up and move fast lifestyle.  In her case I keep her encouraged with sacrifice now to save half your income so by the end of my Son-In-Law's career, theír buying power will be amazing to relocate to just about anywhere they dream of living.

5. Lack of Knowledge

One of the most troubling deterrents to Millennial home buying is the fact that many of them just simply have no knowledge about what goes into buying a home. Think about it like this: a lot of them are just getting out of college (into a job market that isn’t looking very promising), where they spent a large amount of time either living in the dorms or as renters, which (when compared with buying a home) is a relatively lax existence.

Answer:  Vincent teams with me to make a valuable impact on Millennials and give them a little extra incentive to look into home buying as an option, taking on the role of the knowledgeable professor with much wisdom to share. We  give the information to them straight and without pomp. We appreciate serving this Vital Buyer with direct information.

Cheers to a great weekend!

Vincent Redd

Senior Mortgage Banker

T: 630.748.7473
C: 773.255.1698
F: 773.435.6468

www.themortgpro.com
Office NMLS# 222982 | Individual NMLS# 233273
55 W. 22nd Street Unit 130 Lombard, IL 60148

 

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