Millennials have changed the perception of how people view things, especially today. And, of course, home buying is no exception to this. Since millennials have seen the struggle of their parents and grandparents during the Great Recession and over the years, they have become more cautious and conservative regarding their finances and overall lives.
Although they have the preconceived notion of renting or living with their parents first before exploring the market, this can be unrealistic in the long run, especially with mortgage rates going up and down. Buying a home is a better long-term investment.
Most Valuable Advice for Millennial Homebuyers
There are a few things that millennials who are looking to buy their first home should keep in mind.
- The Market is Complex and Constantly Changing. You can sum up the current market conditions with one word: hot. Well, that was until before inflation happened. However, one thing a buyer should be, no matter the market conditions, is decisive. You must also be aware of the current interest rates. Currently, rates are on a slow downturn (after having risen rapidly earlier this year). Overall, it is a volatile period for buyers. Ask a real estate professional for suggestions if you need help determining where to begin. They can make the procedure as simple as possible for you to discover the ideal house.
- Mortgage Rates Are Starting to Recover After Increasing Much of the Year. Mortgage interest rates have been slowly decreasing over the past few weeks. This indicates that it’s a good time to buy a house now, as more houses are available for every individual. And when mortgage rates drop, you can refinance into lower interest rates. It’s important to remember that interest rates can change quickly, so you’ll want to lock in your rate as soon as possible. Talk to your mortgage broker to find out what interest rate you qualify for and to learn more about the current housing market.
- There’s No Need to Wait for Marriage. While many millennials believe that they must be married to buy a house, this is not the case. There are many ways for millennials to buy a house without being married. One option for buying a house without marriage is joining forces with a friend or family member. You can buy a property together or take out a joint mortgage. By pooling resources and sharing the burden of mortgage payments and other associated costs, it becomes much easier for millennials to buy a house. Another option for buying a house without marriage is getting a mortgage with a co-signer. If the borrower cannot make loan payments, a co-signer agrees to assume responsibility for them. This can be a great option for millennials who cannot get a mortgage independently.
Final Thoughts
Regardless of age, there are key points to remember when buying a home. Work with a qualified real estate agent, get pre-approval for your loan, and be prepared to make a down payment. These tips will help you navigate home-buying and make the best decision for you and your family.
Contact Your Kansas City Mortgage Specialist Now!
McGowan Mortgages is a reliable loan company in Kansas that aids millennials in obtaining the mortgage they need to buy their dream home. Contact us today at (816) 631-9687 for more information!
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