Home Buying Tips from Smart Millennials

You’ve probably heard all the negative comments about Millennials – they’re lazy, won’t work hard, expect instant gratification, and can’t cope with adversity. Well, some of that may be true but when it comes to finances, they can be pretty smart.

Young adults are the largest segment of new homeowners in the country.  36% of the homes sold in the U.S. over the past year were purchased by Millennials. That’s not too shabby for a bunch of lazy kids.

If you’re thinking about buying a house, you might want to take a few tips from these smart Millenials:

Technology

90% of Millennials use online resources to research homes and the mortgage process before they speak to a real estate agent, mortgage broker or lender. Once you’ve done your research, look for a real estate agent or mortgage broker who can give you a personalized concierge service when you need assistance.

Mortgage rates

Mortgage rates can fluctuate almost daily, so it makes sense to use online tools to verify your rate. You also need to figure out all the costs you’ll incur when you purchase a home.  A mortgage calculator can help you do this.

Trend-wise, within the last seven years, long-term mortgage rates have been at very high levels. The benchmark 30-year mortgage rate reached as high as 4.66% in May of this year versus last year when the interest rate was only at 3.9%.

Rising mortgage rates have led to a noticeable increase in real estate prices, which put the brakes on home buying activity during the summer when home sales typically experience an increase. But it had little to no effect on the young folk buying homes.

Credit Score

Your credit score is a major factor in getting approved for a home loan.  But dont fret if your score isn’t perfect. According to new data, the average credit scores of Millennial home buyers ranged from 662 to upwards of 750, depending on the city.

So if you are getting ready to buy a home, make use of all the online tools and find an agent who understands how you like to work and is prepared to give you the service you need.

There is one area where you will need a smart real estate agent – all the possible ways to get help with a down payment. There are many options and you’ll need a knowledgeable realtor to point you in the right direction.

Happy house hunting!

 

 

 

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