First World Problems: How The Millennial Generation Can Buy A Home
One of the most prominent issues the millennial generation has is that they are unable to afford a home. The vast majority have resigned themselves to the fact that they will be renting for their entire lives. But, short of them inheriting a property, is it feasible for them to buy a home without it crippling them financially? So, if this is you, what can you do?
Having A Good Relationship With A Lender
Having a good lender or realtor will give you a bit more sway, and you will understand a bit more about what is available out there. In addition to this, you will understand more about the best ways to get assistance with a down payment. If you have no idea how to gain control of your finances, then it's time to get a bit more knowledge under your cap. There is no point in pretending you know everything- go to advisers or professional advice.
Start As Early As Possible
Putting away savings as soon as possible is the one way to get onto the property ladder, regardless of your age. Choosing your investment avenues wisely, again, with the help of professional advice, will help you to take advantage of what is out there. Even with something like net lease properties, there is still a considerable cost upfront, if you go down the buy to let method of acquiring a home, where you pay the mortgage yourself, but rent it out to a tenant, it could be a bit of a struggle at the outset, but with long-term gain.
Get Prequalified For Financing
If you are one of those lucky people that can pay in cash, it's best for you to get pre-qualified for a loan before you start looking for a home. It doesn't take long, and you can do it over the phone, or online with the lender you want to go with. They take into account your credit history, as well as your current financial situation, and can give you the amount that you qualify for.
Strike While The Iron Is Hot
Keeping an eye on mortgage rates is a practice that you should get into, because while houses may seem expensive at the moment, if you wait any longer, the interest rates could go further up. If you are saving up enough money, it's important for you to keep an eye on how the mortgage interest rates are looking, especially in relation to current political climate. For example, Britain leaving the EU could cause a dip in housing costs, and banks are still keen on lending currently.
The millennial generation doesn’t have it easy as far as the financial climate is concerned. With rising prices all around, but the salaries not meeting them, the fundamental cost in life, such as mortgages, appear to be non-existent. But, this decline in young property owners means that the millennials need to be more knowledgeable about what they're entering into. It is certainly possible for the millennial generation to buy a home, but there's a lot more to consider now than 10 or 20 years ago.
