Get My New Homebuyers Guide For Millennials

If you are one of the millions of Millennials who has seen their peers begin to buy homes recently and are wondering what it would take for you to do the same... you’ve found the right eGuide!

There are many stereotypes and myths about the Millennial Generation as a whole, AND even more misunderstandings about what it takes to buy a home in today’s market.

These myths have prevented many Millennials from even considering homeownership as an option for them and their families.

The goal of this eGuide is to provide you with the information you will need to make the best decision for you and your family in regards to homeownership. We will break down the myths and stereotypes that have long been believed to be true, as well as shed light on the opportunity you have to build wealth using your monthly housing cost.

In this eGuide we will discuss several things that weigh heavily on the minds of many millennials. 

Will student loans keep me from being able to buy a home?

Reasons Those with Student Loans Are Delaying Buying a Home:

• 85% - Can’t save for a down payment because of student debt

• 74% - Don’t feel financially secure enough because of existing student debt

• 52% - Can’t qualify for a mortgage due to debt-to-income ratio (DTI)

• 47% - Can’t afford their preferred house or neighborhood

• 18% - Don’t have the financial know-how to confidently navigate the housing market

• Can’t save for a down payment – What size down payment do they think they need?

Can’t qualify for a mortgage due to debt-to-income ratio (DTI) – There is a big difference between your front-end DTI and your back-end DTI. The front-end DTI measures the amount of your monthly income that you will be spending on your mortgage payment. The back-end DTI takes into consideration your entire monthly expenses (or debts) in comparison to your monthly income.

The last one is where your agent comes in: Don’t have the financial know-how to confidently navigate the housing market - Your agent should be your strategic partner throughout the home buying process. He or she is there to answer your questions and put your mind at ease about the big decisions that you will be making in order to make your dream of owning a home come true!

You need 20% down to buy a home.

Gone are the days of 20% down or no loan, but recent surveys reveal that many Americans are not aware that programs exist to put down less.

Fannie Mae survey results revealed that consumers often overestimate the down payment funds needed to qualify for a home loan; 76% of respondents either don’t know (40%) or are misinformed (36%) about the minimum down payment required. Many believe that they need at least 20% down to buy their dream home, but many programs actually let buyers put down as little as 3%.

Since Millennials make up the largest share of first-time buyers, it should come as no surprise that 97% of this generation financed their home purchase, compared to 86% of all buyers.

61% of Millennials who purchased a home in 2017 put down 10% or less!

According to data from the last 12 months of Ellie Mae’s Millennial Tracker, the average down payment for a Millennial was 10%. FHA loans for those who qualify can only require 3.75% down and veterans using a VA loan can acquire a loan for 0% down!

Your dream home could be within your reach much sooner than you ever thought if you only need to save up 3-10% instead of the 20% that you may have thought you needed!

We need perfect credit to buy a home.

What is a credit score? According to Investopedia, “a credit score is a statistical number that depicts a person’s creditworthiness. Lenders use a credit score to evaluate the probability that a person repays their debts. Companies generate a credit score for each person with a Social Security number using data from the person’s previous credit history.

A credit score is a three-digit number ranging from 300 to 850, with 850 as the highest score that a borrower can achieve. The higher the score, the more financially trustworthy a person is considered to be.”

Fannie Mae’s survey also revealed that 59% of Americans either don’t know or are misinformed about what FICO® credit score is necessary to qualify. Many Americans believe a ‘good’ score is 780 or higher. The reality is that you can qualify for an FHA loan with a credit score of 640. And many states offer down payment assistance programs that can make home buying even more affordable.

If you would like a copy of the eGuide just send me a message here on linkedin, email me at Troy@TroyAdlerRealty.com or give me a call or text at 770-676-8999. I would love to send you a free copy.