What a New Millennial Survey Teaches Us ...

By
Mortgage and Lending with NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 IL Lic 031.0006220/WI
https://activerain.com/droplet/5kxR
 
 
What a New Millennial Survey Teaches Us ...
 
 
While Millennials are currently reported to be buying homes at a faster pace than in the past, many of those that wish to buy are presently being stymied ...
 
What is it that Millennials feel stand in the way of their home buying dreams?  And what number feel that they are fundamentally incapable of buying?
 
survey conducted by LendEDU attempts to shed some light on these questions.  The June 2019 survey indicates that while many Millennials long for homeownership, nearly 90% of non-homeowning Millennials hoping to buy have not done so yet.  

Why not?

Most taking the survey indicated that their student loans were/are the biggest deterrent to taking this big financial step.  

This should come as no big surprise.  The difficulties surrounding student loan debt have been in the spotlight (and hot-seat) for a long time now.  

Now it's true that some mortgage programs exist and can be of assistance to those facing student loan challenge.  Unfortunately, even with this program available, many Millennials still feel that their student loan debt is insurmountable and that sentiment is keeping them from pursuing homeownership.

It must be pointed out here:  The LendEDU survey also indicated that student loan debt isn't the only financial hurdle that Millennials feel they are facing.  

Credit Card debt, building better credit scores, building savings, building an emergency account, and retirement savings ... each was reported in large measure as major concerns.  There were also other "contributors" too.

It's reported within the survey that:

  • A lack of knowledge 
  • Inadequate financing education 
  • Misconceptions regarding financing requirements
  • Misconceptions regarding the mortgage process itself 
...  contributed greatly to Millennials sitting on the home buying sideline.

Now there is little an individual Loan Officer can do to address the type or number of loan programs available for borrowers.  That is largely left to government entities and the Private Sector that makes Home Loans.  

However, there IS much Loan Officers can do to address the lack of knowledge, level of financing education, or misconceptions held by Millennials.  And that is why I write this article. 

So what are those financing/credit issues pinpointed and detailed by the LendEDU survey (and other surveys) as troublesome?  
 
The issues revolve around:
  • Credit Score requirements
  • How Credit Scores are utilized by Lenders
  • Checking Credit Report will hurt Credit Scores
  • That married couples have ONE/combined credit scores
  • Down Payment requirements and guidelines
  • Closing Costs involved in Mortgage financing
  • Time/Days of Average Mortgage Process 
  • Info pertaining to Debt-to-Income Ratios
  • Gift Monies
And these common misconceptions:
  • That Pre-Qualification = Pre-Approval
  • That Interest Rates are the only measurement of Mortgage costs
  • That all debt is weighted equally
  • More ...

I think you get my drift.  There are just way too many facets of the mortgage process and its requirements that current hopeful Millennial buyers do not understand, have wrong, or at a minimum ... misunderstand.  

Again, addressing THAT issue is something I and other Loan Officers can do something about by offering educational opportunities and information.  But to a large part, we can only do that if those hoping to buy reach out and ask questions.  

Why is this personal touch ... this in-depth conversation between LO and hopeful home buyer so very important?

Increasingly, mortgages and mortgage approvals are tethered and tailored to the applicant's personal finances, credit scores, and needs.  Comparisons cannot be made between applicants as their financial and credit backgrounds ... their needs ... are always different.  Mortgage decisions made by client and LO are based on facts and figures intensely personal to the individual mortgage applicant.

So the only way to receive the answers needed to make an informed financing and home buying decision is to talk to a lender Then and only then can we provide the facts and the knowledge needed to assist ... whether that be in the infancy of their home buying journey or somewhere along its path.

52% of those Millennials surveyed by LendEDU indicated that they preferred that this type of assistance and initial conversation with a lender be held in-person.  But whether it be conducted one-on-one or via another method, it is the first step and the most reliable step a hopeful home buyer/borrower should and can make.

Millennials should not leave such an important decision regarding their future to chance.  The opportunity to ask questions, educate themselves and gain valuable information personal to their individual finances exists and all is easily attainable.   

Reach out and talk to me or your local lender today ...

 
 
* Hoping to Buy or Refinance a Home or Investment Property in the New Lenox - Will County - Chicagoland - IL/WI area?
 
Contact Me! I'll get you the facts, info, and figures you need to make the best home buying and mortgage financing decisions for you and your future.
I'm easily found at:


Gene Mundt

Mortgage Originator  -  NMLS #216987  -  IL Lic. #031.0006220  -  WI License #216987
 
 
American Portfolio Mortgage Corp.
NMLS #175656
 
 
 
Direct:  815.524.2280
Cell/Text:  708.921.6331
eFax:  815.524.2281

 
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Gene Mundt

 Mortgage Originator  -  NMLS #216987    

                                 IL Lic. #031.0006220  -  WI License #216987                                                                                                    

NMLS #175656

 

Gene Mundt, Mortgage Originator,  40+ 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, #Wilmington, #Peotone, etc.), #DuPage County, the City of Chicago, #Cook County, and elsewhere within IL and Wisconsin. 

 

Your Referrals & Testimonials are Always Greatly Appreciated! 

 

 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. M.C. Dwyer 09/06/2019 08:21 AM
Topic:
Home Buying
Location:
Illinois Will County New Lenox
Groups:
Mortgages
1st Time Buyers
Buyer Information - What Buyers Need to Know in Today's Market
Bananatude
WillCounty
Tags:
education
surveys
first time homebuyers
educating home buyers
millennials
prequalification for mortgage
millennials buying a home
talktoalender

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Ambassador
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Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

wonderful post GENE  in fact this is going to be

Featured in Bananatude 

bananatude

Aug 30, 2019 08:16 AM #7
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Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi Gene- excellent information for Millennials and really anyone else who may be interested in getting a loan. When you need help, go to an expert!

Aug 30, 2019 06:18 PM #8
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Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

                               

                                            Thanks, Gene.

Aug 31, 2019 07:02 PM #9
Rainmaker
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Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi - the mention about inadequate financial education is a big one.  They need to get started on that early.  But it is not too late to turn things around.

Sep 01, 2019 06:10 AM #10
Rainmaker
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Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

Preapproval is super important, and should be done before looking at any homes!

Sep 01, 2019 07:43 AM #11
Rainmaker
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Tom Bailey
Margaret Rudd & Associates Inc. - Oak Island, NC

Well said Gene! I think another thing holding Millennials back from buying, is their desire for constant change! If they rent when they get tired of the place, they just move on to something different 

Sep 01, 2019 06:46 PM #12
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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Hi Gene:

Thanks for the education that will benefit many would-be homeowners. We keep saying that talking with a well-qualified lender early on and getting pre-approved are essential...and clarifying the misconceptions and the misinformation is part of that.

Jeff

Sep 02, 2019 12:33 PM #13
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Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I think with a lot of millennials, the time is just time to do it so they just go for it, Because if stable enough and been smart enough with their student loans after a certain point and it’s a privilege and not a given.

Sep 03, 2019 10:02 PM #14
Rainmaker
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Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Qualifications are a big part of it, Jeff. I can’t to know that much but I think it’s more of a lifestyle of “getting your stuff together” first and then making the jump to homeownership. People are getting graduate degrees and seeing marriage as a later option or goal.

Sep 03, 2019 10:04 PM #15
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Kat Palmiotti
406-270-3667 (MT), 914-419-0270 (NY), Broker in NY with Grand Lux Realty and in MT with (coming soon!) - Kalispell, MT
The House Kat

There are a lot of misconceptions out there about the mortgage and credit process. Buyers really should contact a mortgage broker to find out what they can or can't do. And if they can't do what they want, what it would take to be in a position where they can.

Sep 04, 2019 06:07 AM #16
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Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Getting the facts from an expert is always so much wiser than getting information from friends, television, Facebook, etc. They don't even know what they don't know.

Sep 05, 2019 09:12 PM #17
Anonymous
Flavia Brown

Quite a good post, but a few statements don't make sense. For example, I doubt there is any Realtor in the entire U.S. who doesn't know the difference between pre-qualify and pre-approval.

Sep 05, 2019 10:22 PM #18
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Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

It's complicated.  A good lender can sort it out and get a buyer started on the right course to home ownership.

Sep 05, 2019 11:48 PM #19
Rainmaker
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Graziella Bruner
NCS Premier Real Estate - Detroit, MI
Associate Broker - Serving Wayne & Oakland County

Excellent post and great points. We all need to be handheld when it comes to making the biggest financial decision one will probably ever make.  It's always good to get all the information and talking with a lender is a great start.  thanks for sharing.

Sep 06, 2019 05:00 AM #20
Rainmaker
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M.C. Dwyer
Century 21 Showcase REALTORs - Felton, CA
Santa Cruz Mountains Property Specialist

I'm so glad your blog got featured!    I think many people are initially intimidated by the process, but the only way to overcome that is to talk to a great loan officer.    I can tell by the way that you write, that you care!    Reblogging with gratitude!

Sep 06, 2019 08:16 AM #21
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John Henry
John Henry Masterworks Design International, Inc. - Orlando, FL
Residential Architect, Luxury Custom Home Design

Thanks for the low down on Millenials and mortgages.  Much applies to many of us that are not very knowledgable about the entire process!

Sep 07, 2019 09:10 AM #22
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Such a great post and you know, I've seen much the same as your study shows, Brotha Gene!

Two things of note - I am thrilled to see that HALF of your millennials want to meet in person to discuss - that is a good number, in my experience!

As for the negative commentor who said they were sure agents knew the difference between pre-approval and pre-qualification - they are OBVIOUSLY not in the business! We get pre-qual letters, noted by the agents to be 'pre-approval letter(s) attached' ALL of the time! Not just sometimes either - I would venture to say HALF don't know in my market. 

Sep 08, 2019 10:44 AM #23
Rainmaker
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Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

Great post and definitely worthy of FEATURE!  The first thing I do when I meet a new buyer is explain how the buying process works ... at which time I explain the difference between a pre-qualification and a pre-approcal.  I ask a few pertinent questions and then recommend a local lender who I believe will be best suited to the buyers needs. I make sure they understand the "order" to buying a home is first to find out what amount of money they are qualified for and make sure they understand there are "expenses" they will incur so there are no surprises. Thank you again for your well-written blog Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi 

Sep 08, 2019 08:22 PM #24
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Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

So many think they know what's involved with buying a house but don't.  I always appreciate the buyers that do a bit of homework before contacting an agent--#1 step is talk to a lender!  It is frustrating that most buyers can't buy due to lack of paychecks keeping up with inflation and higher education has no incentive to keep costs in line

Sep 18, 2019 12:33 PM #25
Rainmaker
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Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

great advice which underscores the value of a hands on lender who can help the buyer sort out their finances and debt to income ratios

Sep 30, 2019 04:35 AM #26
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