When you think of a Millennial, a lot of people still picture a young 20-something, but we’re all grown up now! Many of us are now in our mid-to-late 30s with a family and a career, and… are just now ready to buy our first home. According to a study by the National Association of Realtors®, 53% of new mortgages in 2020 were from Millennial buyers. Millennials are the largest generation in terms of population, and have generally been slow to become homeowners due to a variety of factors. But in the last few years, we’ve seen a jump in Millennial buyers. So, what does this mean, and how might it affect homebuying? Let’s talk about Millennial homebuying trends.
So, what took us so long?
According to EducationData.org, 14.8 million Millennials have student loan debt, more than any other generation, averaging nearly $40,000 per borrower. Many of us assume that if we have a large amount of student loan debt, there’s no way we could possibly get a mortgage, even though we make a pretty good income. The reality is that if you work with a mortgage professional who knows the intricacies of the loan guidelines and rules, you may be pleasantly surprised to find that you can, in fact, qualify despite student loan debt. A loan application today is more about viability and feasibility versus assets and debts, so it’s become more about looking at your income and making sure you’d be able to comfortably handle your current debts plus a future mortgage payment.
What are Millennials looking for in a home?
Because the majority of Millennials have waited longer than previous generations to invest in a home, the idea of the traditional smaller “starter home” is kind of fading away, and many of us are looking for a first home with enough space to accommodate a growing family in the future. And as we start having kids and thinking more and more about proximity to amenities, schools, parks, etc, we’re moving further out into the suburbs. This push to move further out was also spurred on by Covid and quarantine and the desire to have more outdoor space – vegetable garden, anyone?
What do Millennials want in a mortgage experience?
We love technology. We don’t love paperwork because we love saving trees. We love digital communication. But we also want to feel a connection with the person who is helping us finance one of the biggest purchases of our lives. For us at Homespire, our homebuyers can utilize our HomespireGO® app – upload docs, sign papers, etc, everything through the app – while also having a dedicated team working on your specific loan and keeping you in the loop every step of the way. It’s the best of both worlds.
If you’ve been on the fence about investing in a home of your own, maybe because you’ve always thought you wouldn’t qualify, please reach out to us. There’s no obligation for us to run the numbers and see how much home you can comfortably afford. Visit our website, www.homespiremortgage.com, to find a Homespire Loan Officer near you.