Tips for Younger Homebuyers: How To Make Your Dream a Reality
For those belonging to the younger generation like Gen Z, the question of whether homeownership is attainable may loom large. It’s understandable to feel apprehensive, given the hurdles posed by inflation, escalating home prices, mortgage rates, and other seemingly daunting factors.
Undoubtedly, the current housing market presents formidable obstacles for first-time homebuyers. However, despite the challenges, achieving homeownership is still within reach, particularly with the guidance of experienced professionals.
Here are a few helpful insights you might receive from a seasoned expert.
1. Explore Your Options for a Down Payment
If your primary obstacle to homeownership is accumulating a down payment, there are avenues available to bolster your savings. With over 2,000 down payment assistance programs in existence, the path to owning a home becomes more attainable. Moreover, receiving financial support from loved ones can also be a viable option, as demonstrated by LendingTree’s findings, indicating that 49% of Gen Z homebuyers utilized funds from family or friends toward their down payment.
It’s important to note that putting down 20% may not be necessary, unless stipulated by your loan type or lender. Therefore, it’s advisable to collaborate with a reputable mortgage professional to assess your options, determine the required amount, and understand any protocols pertaining to receiving monetary gifts from loved ones.
2. Live with Loved Ones To Boost Your Savings
Another thing a number of Gen Z buyers are doing is ditching their rental and moving back in with friends or family. This can help cut down your housing costs so you can build your savings a whole lot faster. As Bankrate explains:
“. . . many have opted to stop renting and live with family in order to boost their savings. Thirty percent of Gen Z homebuyers move directly from their family member’s home to a home of their own, according to NAR.”
3. Cast a Broad Net for Your Search
“Being flexible on the types of home (e.g., a condo or townhome versus a single-family home) and exploring more affordable neighborhoods is important for first-time buyers.”
4. Take a Close Look at Your Wants and Needs
Finally, a real estate agent can assist you in carefully evaluating your essential requirements and desirable amenities. It’s essential to bear in mind that your initial home purchase doesn’t necessarily need to be your forever home. The primary goal is to initiate the process of building equity by getting your foot in the door of homeownership. If purchasing a property is your objective, you might discover that making certain compromises is worthwhile. As Chase says:
“An open-minded approach to house-hunting may be one way for Gen Z homebuyers to maintain some edge. This could mean buying in areas that are less expensive. Differentiating needs vs. wants may help in this area as well.”
An agent will help you prioritize your list of home features and find houses that can deliver on the top ones. And they’ll be able to explain how equity can benefit you in the long run and make it possible to move into that dream home down the line.
Bottom Line
Real estate professionals have expertise on what’s working for other buyers like you. Lean on them for tips and advice along the way. As Directors Mortgage says, with that support you can make it happen:
“The path to homeownership may not be a straightforward one for Gen Z, but it’s undoubtedly within reach. By adopting the right strategies, like exploring down payment assistance programs and sharing living costs with relatives, you can bring your dream of owning a home closer to reality.”
Let’s connect to get you set up for long-term success.
