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Everything You Need to Know Before Pursuing Your Dream of Homeownership

According to the 2022 Millennial & Gen Z Borrower Sentiment Report, many young adults are dreaming of owning their own homes. If you’re one of them and homeownership is high on your priority list, know that you’re not alone. Here’s what the report found:

“Many young adults have demonstrated their resolve to embark on the journey toward homeownership soon. More than half of millennials and Gen Zs plan to apply for a mortgage sometime within the next year.”

Why does homeownership sit at the top of so many young buyers’ to-do lists? Let’s explore that and what you need to take into account to achieve your own housing goals.

The Top Reasons Why Homeownership is So Important to You

If you’re planning on buying a home soon, it’s helpful to first understand why homeownership means so much to you. The survey below looks at some of the main reasons why younger generations are gravitating towards homeownership. key findings include:

  • 95% believe the cost of renting is too high
  • 35% think owing a home is an important wealth building tool
  • 16% seek the sense of security owning a home provides
  • 37% plan to use it as an investment property

Regardless of which of these reasons speaks to you the most, understand that there are many financial and personal explanations for why buying a home may be appealing to you. Your main motivator might differ from what your friends desire, but each reason is just as valid and significant.

Key Hurdles and How To Overcome Them

It’s tricky to figure out where to begin when you have the desire to buy a home. If your reasons for homeownership come from an emotional place or practicality (or, more likely, a combination of both), it can be tough to decide where to start. The process of buying a home comes with multiple layers, including getting pre-approved and understanding which down payment options will work best for you–and that’s just scratching the surface. A recent survey by Maxwell revealed some common challenges people face when they’re thinking about becoming homeowners.

But here’s the good news: having the guidance of experienced real estate agent can help you jump over those hurdles with ease. Let’s take a look at two struggles potential buyers commonly experience:

The Mortgage Process Can Be Daunting

In the Maxwell study, 33.37% said one of their obstacles was that the mortgage process is confusing or difficult to understand.

An article by OwnUp helps explain why the mortgage process is so challenging for buyers:

“There is a general lack of knowledge about home financing. Mortgages are a complicated topic with no one-size-fits-all answer. It’s difficult to understand the space, let alone determine what the right course of action is based on your unique financial picture.

When you’re looking for answers to your questions, it’s easy to just do a quick search online. But sometimes, that won’t give you the full picture. If you’re looking for financial advice, it’s always best to talk to a professional. They can help you understand what it takes to achieve your homeownership goals. And they can give you tailored advice based on your specific situation – something you wouldn’t be able to get from generic online sources.

It can be tough to determine how much money you need to set aside

In the Maxwell study, 45.75% believe they don’t have enough saved to cover their down payment or closing cost expenses.

What you may not realize is that, today, there’s a growing number of down payment assistance programs available nationwide to help relieve this pressure. A report from Down Payment Resource says:

“Our Q3 2022 HPI report revealed a 1.6% uptick in the number of homebuyer assistance programs available to help people finance homes, raising the number of programs to 2,309, a net increase of 36 over the previous quarter.”

As the housing market slows down, buyers are gaining more negotiating power and sellers are becoming more willing to work with buyers on closing costs. If you educate yourself on all the options available, you may be able to achieve your homeownership goals sooner than you thought possible.

Bottom Line

If you’re determined to become a homeowner, be reassured that it may be more achievable than you think. Rely on experienced professionals to help you solve problems and identify your next steps. Reach to our team today!

Contact us now!

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