The dream of owning a house is an American dream that many millennials are now fulfilling. This generation has been criticized for not being able to move out and be independent, but the fact that they are purchasing homes shows how wrong these criticisms can be. One newspaper explains why this is such a big issue: The latest data from the Census Bureau show that 34- to 36-year-olds have been forming new households and buying homes at significantly higher rates than they have since the turn of the century, reversing a trend of young adults making do with rentals after leaving their parents’ home.
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With more millennials owning houses, there are also more mortgage applications. The Mortgage Bankers Association (MBA) states that the market for home mortgage loans is showing significant signs of improvement.
With so many millennial dreams coming true, it’s no wonder why this generation has been described by some as being optimistic about their futures.
The Home Buying Process
Millennials are realizing their dreams of homeownership, but this isn’t an easy task. It’s a long work in progress that takes many years to complete. Generally, homebuyers need to save up for a down payment and then get approved for a home mortgage before they can start looking for houses. This is a lot of work, and homebuyers can’t always do it by themselves. They need help from real estate agents and home loan officers.
Real Estate Agents
While homebuyers can apply for mortgages on their own, home buyers would be foolish not to use the services of a real estate agent when looking for a home. These professionals can aid home buyers and guide them through the home buying process. They help home buyers secure home loans and also show them houses for sale on behalf of home sellers. These professionals can work with home buyers to find suitable homes within their price range, so they don’t have to settle for a home that is out of their budget.
Home Loan Officers
Getting a mortgage is not an easy task and it may seem like home buyers need to know a lot about mortgages before they can start applying for them. Fortunately, there are professionals who specialize in providing mortgages to home buyers. These loan officers help home buyers apply for home loans and then work with them to ensure that the homes that have been chosen meet the requirements of the loan. This saves home buyers time and also gets them on their way to owning a house faster.
Choosing a House
Once home buyers get approved for a mortgage, the fun part begins: the search. It is possible to go house shopping on your own, but it can be more efficient to use the services of an agent especially if you are not familiar with what homes within your price range look like or where they are located. However, if you do decide to go it alone, here are some tips to help you along the way:
Loan Purpose — Make sure that the loan goes towards buying a house and not something else. If your loan is for anything other than buying a home, the interest rate will be higher. Also, make sure that you can afford your mortgage payments because if you cannot, your home will be foreclosed on.
Expiration Date — Home loans usually expire after a certain period has passed, and this means that buyers can no longer apply for the loan they previously received. Make sure to check the expiration date on your house loan so you don’t get caught off guard and end up losing your home and any money that you put into it.
Property Requirements — Every lender has specific requirements for the property that home buyers are trying to buy, so make sure you have all of your paperwork in order before applying for a loan. Knowing these requirements will also speed up the process of getting a home loan approval.
Types of Loans — There are several types of loans available to home buyers, and they each have their own benefits and requirements. Think about what you can afford and then apply for the type of loan that will get you into a home faster without putting too much of a strain on your finances.
Price Range — Everyone wants to live in a beautiful house, but not everyone can afford one. Before going out looking for a house, be sure to set a price range so you don’t end up overspending and going into debt.
What’s Next?
As you can see, millennials are not only buying homes; they are becoming homeowners at high rates. The fact that this generation is working hard to achieve the dream of owning a house proves that they are more than capable of living independently. The future is bright for millennials, and it will only continue to improve with the help of real estate agents, home loan officers, and other professionals who can aid them in achieving their goals.