According to projections, there will be 73 million millennial and 72 million baby boomers in 2019. The comparison shows that you will soon be competing to own homes in Charlotte, North Carolina and other parts of the country with baby boomers. The biggest fear among this generation when it comes to home ownership is inadequate finances. Most millennials consider themselves financially unstable to own homes. However, there are numerous opportunities for you as first-time homebuyers.
Here are the five things that will get you ready and more confident in homeownership:
Fair Isaac Corporation (FICO) noted that majority of millennials do not meet the median credit score of 750 to obtain loans. Additionally, a third of the population does not meet the minimum credit score requirement of 620. This generation is disadvantaged because you have a short credit history and some of you are struggling to clear their student loans. Consequently, it is essential for you to boost your credit score ratings to be able to obtain a loan that will help you own a home.
Lenders rely on your FICO scores and other borrowers’ credit report to determine an individual’s credit risk. The same information assists the lenders to know whether it is beneficial to extend credit. You’re entitled to one free credit report each year from the major companies by the Federal Trade Commission. Knowing what is on your report is the first step to increasing your score as it is common for errors to be present that could be bringing your score down.
Most millennials believe that they cannot own homes because they are expensive. Therefore, renting seems like the best option. Reports from Trulia indicate that homeownership is more cost effective compared to renting. There are several different financial options that are available in North Carolina that are helping first-time home buyers like yourself. These financial options will enable you to determine the most appropriate financial procedure to take in your quest to own a home.
You are able to improve your buying power by getting pre-approved or pre-qualified. The two options assist you to know your financial strength and the amount you can use to buy a home. Loan pre-approval is essential because it increases the seller’s trust in you because of the security. The process further offers you as the buyer, a peace of mind because it acts as a surety that you will qualify for the required mortgage amount.
Research the full home buying process to have confidence in selecting a real estate agent and understanding the best options for you. Dive into resources on lender rates, potential neighborhoods, and mortgage products that are available to you. Seek advice for peers who have went through the process, your parents who have probably bought and sold a few homes as well as following blogs and social media accounts with professionals in the industry.
After researching through the internet and talking to your friends and family, it is essential to consult a professional real estate agent. You want to partner that can build a trusting relationship with. The real estate agent should be able to explain everything in depth and answer all of your questions, big and small. Interview several agents before selecting the one you want to work this. Here are three questions you should ask your real estate agent before hiring them. Purchasing a home can be a long process. You are not obligated to work with the first agent that calls you or you meet with. Do your research, interview and ask questions to find the right person that you trust to have your best interest in the forefront.
The dream of owning a home is no longer a dream. It is more than possible and you are more than capable. Contact me for professional advice on the most accessible and affordable way of owning a home.