Today’s most controversial generation is also the largest group of cohorts investing in real estate. Millennials already surpassed the number of Gen X and Baby Boomers buying houses. This is even though studies show that many millennials are putting off marriage and child-rearing.
Many modern homebuyers are millennial women who have never been married. While some are buying houses with their partners, they are still taking their sweet time before saying yes to marriage. This is just one way millennial homebuyers differ from other generations.
Another remarkable thing about millennial homebuyers is how they are changing the homebuying process. Gone are the days when the buyers are willing to go house shopping by visiting every property that meets their minimum requirements. They are actually streamlining the home buying process which helps make their experience a lot more satisfying.
Here are just a few ways millennials buyers are simplifying the homebuying process.
Millennials are known to use online research to accomplish many things. They are using the internet to find houses for sale, check reviews of local mortgage lenders, and when hiring a real estate agent. They actually do due diligence before making an investment to avoid wasting their hard-earned money.
Sure, some millennial homeowners made costly mistakes when buying their homes. But other millennials are learning from those mistakes to get the most out of their investment. For one, they consider the location very seriously because they want to make sure their future home will be in a safe and engaging neighborhood.
Many modern homebuyers are actually considering different land and housing options offered by the best local builders in their area. For one, many already found what they are looking for in master-planned communities such as Peppercorn Hill. They want to experience a prime central location where all of their desired amenities are within reach while still being able to experience nature at its finest.
Preapproval before Looking for Houses
Many millennials worry about their finances. But that is not stopping them from finally making a home purchase. They are leveraging affordable mortgages, so they finally have a house they can call your own.
Like virtually everyone, they enjoy browsing for homes being sold online. But that does not mean they are already house-hunting. They are simply getting some inspiration, so they can save enough money for their future home purchase.
Millennials are taking their time to get a mortgage preapproval before house-hunting. They actually listen to the recommendations of their loved ones, which is to learn how much they can afford before looking for houses to buy. They use a preapproval to check just how much of a house they can realistically afford before they go on house-hunting.
Saving up for a Down Payment
Millennials know that there are numerous mortgage options available for low to middle-income families. But many of they are taking mortgage seriously by saving for a down payment first. They know that the best way to increase their chances of getting a mortgage approval is by saving enough down payment.
Many millennials are stricken with debt. Aside from the usual credit card debt and possibly a car loan, many are still paying for their student debts. Knowing their credit score is impacted by their debt history, they resort to saving enough down payment to compensate for their usually low credit score.
Some of them may not be able to save the recommended 20% down payment. But they are building their savings to save enough for a down payment. They know that putting down enough down payment is one way to find a lender willing to approve their mortgage.
Building the Right Team
Many buyers would skip the services of the pro just to save themselves from the professional fees. But real estate agents, home inspectors, and even property lawyers can actually help you enjoy bigger savings in the future. Here’s how.
Real estate agents do more than just help you find the properties that best suit your needs. They can also negotiate on your behalf so you can enjoy bigger savings and better deals. Many millennials work with a real estate agent to gain access to houses being sold off-market.
Millennials are also leveraging home inspections to ensure they are buying houses they can afford to flip. Many of today’s homebuyers can only afford fixer-upper homes. With a reliable home inspector, millennials get to make negotiations that benefit them in the end.
These are but four ways modern homebuyers are streamlining the homebuying process. They try to make their future investment a worthy one by doing enough research, preparing for the purchase ahead of time, and by hiring the services of the pros. This goes to show that even if some have regrets when making a home purchase, more millennials are becoming wiser when buying their next homes.