Why Millennial Homebuyers Are on The Rise
WHO IS CONSIDERED A MILLENNIAL HOMEBUYER?
Millennials are people born between the years 1984 and 1993. Year after year, they are entering the stage of their lives where responsibilities such as homeownership, investing and savings are moving to the forefront. It’s because of this that many millennials are taking the home buying journey and making steps to get qualified for a new home. This transition is nothing new – most people (including previous generations) are in their 20s and 30s when they start thinking about settling down. If you’re a Delaware millennial and you need advice on navigating the housing market, the John Thomas Team can help – call 302-703-0727 for a Rate Quote or Apply Online, and we’ll get you started right away!
WHY ARE MILLENNIALS BUYING MORE HOUSES?
Renting an apartment or home is more expensive than ever right now. The truth is, rent adds up – it’s especially costly when you factor in student loan payments, costs of starting a family, and other general expenses. Millennials entering the workforce are better able to crunch the numbers and weigh the benefits of investing in homeownership. The fact is, you will either pay your mortgage or your landlord’s – but you’re paying a mortgage either way. There are also aesthetic benefits like more customization options, the freedom to enjoy your home the way you see fit, and a chance to build a future. In the long run, it makes much more sense for stability and cost-effectiveness.
There’s also just the general fact that millennials are entering adulthood, as stated above. While older generations are still purchasing homes (even into their late 30s or 40s), millennials are finishing grad school or becoming newlyweds – buying a first home is now starting to make sense. Older generations are still present in the homebuying market, but a lack of inventory and difficult price points is creating a tougher job for them.
WHERE ARE THE BEST PLACES FOR MILLENNIAL HOMEOWNERSHIP
Typically, millennials are staying away from urban areas. Washington, D.C, New York, Massachusetts, Washington, and California are home to millennials with the highest average salaries in the U.S, but rising rent prices make it a challenge to find housing in these areas. These places also happen to be costly places to live when it comes to cost of living. While there is increased interest in these areas as more and more people understand the benefits of homeownership (especially in cities with high rents), many millennials are looking to less urban areas to start their home buying journey. Delaware homebuyers can find better rates and options than people trying to navigate the housing market in places like San Francisco and New York.
Places like Minnesota, West Virginia, Indiana and Delawrae currently hold the most millennial homeowners. They have lower costs of living and are much more attractive in terms of affordability and longevity.
WHAT ARE SOME LOAN OPTIONS AVAILABLE TO MILLENNIAL HOMEBUYERS?
There are a variety of options available for funding your home search. Anything from a VA loan (which caters to veterans and their spouses), loans programs that allow multiple family members on one mortgage, and programs that cater to credit challenged millennials are available. It’s all about getting started and realizing that no situation is too unique – you don’t need to be afraid to apply for homeownership. Today, PRMI even offers assistance programs for customers with little-to-no down payment. We want everyone to have a chance to live in their dream home.
We’re also in a more technical world, making applying and getting ready for homeownership much more accessible than previous eras. PRMI makes applying and expressing interest in homeownership easy. To deal with a more technical world, we have an online application called ‘Click Approval.’ Going to https://www.PRMIClickApproval.com and clicking the link is all you need to do to start the application process. You’re done in about 10-15 minutes, making it a super simple and easy task. These technological improvements are not just for millennials – our feedback shows that older generations appreciate it, too.
HOW CAN MILLENNIALS WITH CREDIT CHALLENGES ENTER HOMEOWNERSHIP?
There are plenty of resources available for millennial homebuyers, including First Time Home Buyer Seminars. These seminars can help homebuyers with challenged credit understand the best course of action, get actual advice from realtors in the area, and prepare themselves for realistic costs and situations. While creditworthiness is still a significant concern when applying for a home, it’s easy to find the help you need to get your credit in order. Poor credit is not a death sentence in the home buying process, but you will need to invest time and effort to make your dream manageable and realistic.
For those who are credit-challenged, we offer programs that can help you buy a home and not send yourself into financial ruin.
WHAT STEPS SHOULD I TAKE TO GET STARTED
If you’re a Delaware millennial who is looking to enter the homebuying journey, contact the John Thomas team at 302-703-0727 for a Rate Quote or Apply Online and we’ll get you started right away!