Tackling Millennial Student-Loan Debt: Getting on Track to Buy a Home in Chicagoland
This is an excellent post about the effects of student loans and the effects on the entire economy. Some great advice about starting the conversation now to prepare for home ownership down the road. An experienced loan officer can put you on the right path to pay down the debt and help position you fianancially...I didn't realize all of the ripple effects of student loans....
Tackling Millennial Student-Loan Debt:Getting on Track to Buy a Home in Chicagoland
Being the father of two Millennial-age sons, I can tell you from personal experience ... this age group is facing some serious financial issues. For one, student-loan debt. It's much higher than ours was. And that debt (a quadrupling between 2003 and 2012) is currently slowing, stalling or keeping them out of the housing market.
Luckily, one of my sons dodged this economic bullet. College costs were very minimal because of a college scholarship. My other son did much the same while attaining his Bachelor's Degree, but he decided to pursue further education and attended law school. Out of state. Ouch! He's making steady headway on repayment of those loans, but the debt takes a real toll. And it has kept him from home buying to this point.
Statistics will prove that he's not alone. A report released by the Federal Reserve Bank of New York in April of 2013, shows that the home ownership rate of 30-year-old Home Buyers that also have student loan debt has decreased by over 10%. That bucks past trends where history has shown that those with more education have proven to be more active in the home buying market.
That is sad, especially when considering tandem statistics regarding the level of economic activity that could be stimulated by that Millennial demographic. In just one area of the economy alone, that of home building, it is estimated by the National Association of Home Builders that: If First-time Home Buyers purchased 143,000 newly-constructed homes, it would create 86,000 new jobs. Jobs created by these purchases include: Home repair, real estate commissions, home staging, home insurance, furniture and appliance sales, construction material sales, mortgage lending, landscaping design and application, and many more.
While a political debate rages over the handling of this issue, the problem remains as one that is real and effecting potential Millennial Home Buyers now. So how do we in the Mortgage and Real Estate Industry help Millennial's tackle this problem? How do we help potential and hopeful Millennials find solutions and become actual Home Buyers today ... and in the future?
Ibelieve theanswer lies in Education, Conversation, and continuing Communication. Education and opportunities to converse with Millennials about options that directly apply to them are invaluable. Hopeful Millennial Buyers need to seek and talk to a Mortgage Lender (or an Agent) long before they hope to Buy a Home. Then they must keep that communication going and pro-actively position themselves to buy their home.
A Mortgage Lender can offer Millennials burdened with student debt concrete advice and direction as to how to pay down their debt(s). This will help their debt-to-income ratios (an area of major concern when seeking Mortgage financing) immensely. A Lender can guide Millennials towards higher credit scores and position them for their future home purchase faster and more successfully.
A Mortgage Lender can also educate about financing options that will help Millennials achieve home ownership sooner than those that do not seek guidance and assistance. One option that might be raised is that of Gift Money.
Should a young Home Buyer be lucky enough to have someone willing to gift them money to advance a home purchase, I ... as your Mortgage Lender, can advise and direct those gift monies where it can serve you the highest purpose, whether that be towards the Down Payment for the home purchase itself or pay down of other debt. Depending on your financial scenario, one course of action may be more advantageous than the other.
Another option that could be considered is that of obtaining a Co-Signer. I have written on this topic previously, but knowing the pros and cons of Co-Signing is important for both the recipient of the assistance and the Co-Signer themselves. Again, gaining education on this option well ahead of a considered home purchase is very important.
Millennials hoping to buy soon ... or at some point in the future, need to take advantage of the valuable credit info, financial advice, and guidance that is available to them. Being educated as to what will be expected of you regarding Credit Scores, from you as a Borrower, as well as the financial documentation required during Mortgage Application, is greatly beneficial too. You can better prepare yourself and be organized as you work towards your Home Buying goal.
As a Mortgage Lender, I offer FREE consultations for those hoping to buy currently, but also for those hoping to buy down the road. My advice proves invaluable in getting you (and other hopeful Home Buyers) on the right track towards a successful home purchase.
Tackling Millennial Student-Loan Debt: Getting on Track to Buy a Home in Chicagoland. Start the conversation. Ask questions. Don't hesitate or waste valuable time. Contact Me. The assistance and education you'll gain will prove beneficial to you in a myriad of ways.* Are your a Millennial-age hopeful Home Buyer in Chicagoland? Contact Me today! I'll be happy to discuss all your financial options and help you better position yourself to Buy a Home, whether it's now or in the future.
I can be easily found at the following:Direct: 815.524.2280Cell/Text: 708.921.6331eFax: 815.524.2281
Click HERE for a FREE Mortgage Consultation!Ready to Apply for your Mortgage?
Gene MundtRegional Manager - Mortgage Lender
American Portfolio Mortgage Corp.
Personal NMLS #216987
NMLS # 175656
Gene Mundt, Mortgage Lender, a Lender with 36 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including: The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL. Gene Mundt, Mortgage Lender can be contacted at: 815.524.2280 or via his email: gmundt@goapmc.com.
Contact Gene Mundt, Mortgage Lender soon!
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