What You Want To Know If You’re Pursuing Your Dream of Homeownership
If you're a young adult, you could be considering your plans for the weeks, months, and years to come. And you're not alone if owning a home is high on your list of objectives. Many of your peers are working toward their goal of home ownership. According to Maxwell's 2022 Millennial & Gen Z Borrower Sentiment Report:
“Many young adults have demonstrated their resolve to embark on the journey toward homeownership soon. More than half of millennials and Gen Zs plan to apply for a mortgage sometime within the next year.”
Let's look at why homeownership is at the top of so many young buyers' to-do lists and what you should think about if you're one of them to accomplish your goals.
Top Reasons to Purchase a Home
It's crucial to understand why homeownership is so important to you before you begin the home-buying process. Some of the main motives for younger generations wishing to purchase a home are revealed by the poll described above. It reveals:
- 95% believe the cost of renting is too high
- 35% think owing a home is an important wealth building tool
- 16% seek the sense of security owning a home provides
- 37% plan to use it as an investment property
Whichever of these resonates with you the most, remember that there are many other reasons, both financial and otherwise, why you might desire to own a home. Although your primary motive may differ from that of your pals, they are all equally important and deserving.
Important Difficulties and How to Get Past Them
It can be challenging to know where to begin when looking to buy a home, regardless of whether your homeownership goals are motivated by financial aspirations or emotional goals (or both). From comprehending the home-buying procedure to obtaining pre-approval and investigating available options for a down payment, it’s a lot to wrap your head around.
The same Maxwell survey also identifies significant obstacles for prospective purchasers. Thankfully, you may overcome both with the assistance of the knowledge and advice of a reliable real estate expert. Here are two challenges that prospective homebuyers claim they encounter:
1. The Mortgage Application Process Can Be Difficult
According to the Maxwell study, 33.37% of respondents listed difficulty in understanding the mortgage application process as one of their challenges.
An post by OwnUp explains why it's so difficult for buyers to obtain a mortgage:
“There is a general lack of knowledge about home financing. Mortgages are a complicated topic with no one-size-fits-all answer. It’s difficult to understand the space, let alone determine what the right course of action is based on your unique financial picture.”
While you might be tempted to run a quick search online to get answers right away, this may not give you the details you need to fully grasp the situation. You should seek the counsel of a true expert, particularly when it comes to financial advice. Knowing what it takes to realize your dream of homeownership can be facilitated by having dependable experts on your side. Not to mention, a professional may provide you with guidance tailored to your circumstances rather than general information you could discover online.
2. Knowing how much money you need to save is difficult.
According to the Maxwell study, 45.75 percent of respondents feel they don't have enough money saved to pay for their down payment or closing costs.
You might be surprised to learn that there are now more down payment assistance programs available nationwide to ease this burden. A report from Down Payment Resource says:
“Our Q3 2022 HPI report revealed a 1.6% uptick in the number of homebuyer assistance programs available to help people finance homes, raising the number of programs to 2,309, a net increase of 36 over the previous quarter.”
In addition, buyers are regaining some negotiating leverage as the housing market cools, and more sellers are open to working with purchasers to cover closing expenses. Your dream of becoming a homeowner may come true more quickly than you anticipated if you have a good understanding of what's out there and your possibilities.
To sum up
If you're committed to buying a home, know that it might be closer than you think. To overcome obstacles and organize your next steps, rely on reliable experts.