Homebuying for Millennials: How Much Can You Afford?

Millennials are asking the question; "How much can I afford?"

It isn’t a secret in today’s world the impact that millennials are having on society. After all, they are the future of our world.

As Roseville Mortgage Lenders it is our duty to monitor the current housing market and try to anticipate where it is heading. However, you don’t need to be a real estate agent to see how millennials are creating an impact in the industry!

One area that they are having (and are going to continue to have) an impact on is the housing market. Despite previous predictions citing that millennials aren’t interested in purchasing a home, we’ve actually seen the opposite.

Per an article on CNN, millennials are actually the biggest group of homebuyers. At the beginning of the year, this group represented 45% of all home purchase loans, which was an increase from the previous year.

To further confirm that millennials are eager to break into the housing market, a Fannie Mae study found that 91% of current renters between 25-34 years old want to buy a home in the near future.

However, it’s not an easy path that this generation is about to embark on. More so than ever, the current generation of people in the 20s are stuck paying student loan debts, credit cards, and other expenses. This has made it increasingly difficult for them to commit to buying a home.

Another factor that millennials don’t have in their corner when considering buying a home is experience. This group are mainly first-time homebuyers and will consistently be bidding against older generations who are likely buying their second, third, or maybe even their tenth home. Depending on where certain millennials are located, the demand for homes can drive prices higher, only diminishing the millennial’s hope of landing a new place to live.

The fact is that the current generation of young homebuyers are realizing what a great investment a home can be. The sooner they are able to secure one, the more they are likely to benefit from its value going up.

But what if you don’t have $70,000 to drop on a down payment? Fortunately, there are options for young buyers and those purchasing for the first time.

As a small, community-based company, our Roseville Mortgage Lenders care about you. We see young people in our community every day going through this exact scenario, wanting to purchase a home but facing several obstacles that can easily scare them off.

This is why our team places a focus on young homebuyers looking to purchase their first home. Questions such as “How much can I afford” and “What do I qualify for” are the kind that we love to help you answer.

Whether it’s through one of our mortgage calculators to get an estimate of where you stand financially and see how much you may be looking at in terms of monthly payments, we want to help. Our mortgage experts on staff are locals who have experienced the process themselves.

We understand where you are coming from and want to help as much as possible.

If you are considering buying a home for the first time or simply want to find out how much you can afford, get in touch with us today and we’d be more than happy to walk you through it!