Millennials have caught a lot of flack over the years for their love of avocado toast or knack for “killing” various industries. However, they’re also shaking up the real estate world in more ways than you might think. If you’re a millennial buyer who’s ready to kickstart your home search, we have a few tips that might help—and they’re just as unique as you are.
Pay Off Student Loans
Did you know that millennials are the most educated generation to date? It’s true—39% of millennials are college graduates, and 28% have at least taken a few courses. However, more schooling also means more debt, which can be detrimental to the home-buying process.
Many would-be first-time buyers are putting off their search due to student loans. Although loan debt can be crippling, you’ll want to pay it off before taking on a mortgage. It’s best to make bi-weekly payments to avoid more interest, but you might also want to refinance your loans if they become too unbearable.
Save for a Down Payment
Unsurprisingly, 98% of millennials pay for their homes with a mortgage. It’s okay to take out a loan once you’ve paid off most (if not all) of your remaining debt, but you’ll also want to save plenty of money for a down payment.
Although many buyers believe that they have to put 20% down, that’s not necessarily true. In fact, some first-time buyers make no down payment due to specially-tailored programs and loans. However, you’ll still want to save as much as possible—remember, the more money you have up front, the more house you can afford.
Not sure where to start? Establishing a dedicated bank account for your down payment and contributing to it each month will set you on the track to homeownership.
Get Ready for Competition
If you’re looking for a detached, single-family home with two to three bedrooms and two bathrooms, you aren’t alone. Unfortunately, many other millennials are searching for the same kind of property, which means you’ll experience tons of competition.
While it’s not uncommon to see homes flying off the market, you can still stand out in a sea of buyers. Getting pre-approved for your mortgage will show sellers that you’re ready to make a deal, so they might consider your offer more than others. Drafting up a buyer’s letter is another tactic that might set you apart from your competition. After all, a personal story will make you seem more like a human instead of a number!
Remember—most millennials are first-time buyers. It’s okay to not know everything at first, so treat your home search as a learning experience. While it’s all right to set some expectations, make sure to be realistic. After all, buying a home isn’t the easiest thing in the world!
If you’re looking to simplify the buying process, you’ll want to work with an experienced agent. The right one will take time to get to know you, but they’ll also act as a teacher and guide throughout your home search. That’s why it’s important to find the right fit before you even start looking for the perfect place!
Are You a Millennial Buyer?
If you’re a millennial buyer, you likely have some unique needs when it comes to real estate. That’s why I’m here to help! As your Main Line home expert, I have what it takes to help you find your dream home. Just give me a call to learn more about what I can do for you!