Last year nearly one-third of all homebuyers, and 68 percent of first-time buyers, were 34 or younger. According to the National Association of Realtors, millennials represent the largest share of homebuyers. As the housing market gains steam, fueled by an improving job market and near record-low mortgage rates, the percentage of millennials entering the real estate market is expected to grow.
If you are a first time homebuyer and happen to fall in the millennials generation here are a few tips for you to avoid some colossal home buying mistakes:
Don’t Overestimate your Affordability Limits:
Many first time homebuyers focus on their down payment and monthly mortgage payments. To purchase a home a home buyer also needs closing costs and extra money for other expenses that may arise throughout the escrow period.
It’s important to remember that monthly payments include not just the mortgage, but interest, taxes and insurance.
We highly recommend that our homebuyers get pre-approved for a mortgage loan so they know the amount a bank is willing to lend them. We also remind our homebuyers that the amount they are pre-approved to borrow may be more than they can actually afford once factors such as taxes, insurance and other costs like condo or homeowners’ association fees and maintenance have been added.
Don’t Let Your Emotions Get the Better of You:
When purchasing a home it’s hard not to get emotionally attached. Getting too emotionally attached can set you up into spending more money than you can afford.
We recommend that our clients create a list and prioritize their needs and wants in a home. It will be difficult to locate a home that meets all the items on your list but, narrowing your list down to what matters most can help you through your search process.
It’s getting more expensive to live in San Diego, for renters and buyers alike. Home values increased 6.2 percent in the first half of 2015 from a year earlier.
Millennials have been slow to jump into the sales market but, many factors have changed the way this generation looks at home ownership.
As a representative of this generation, Jennifer Anderson has simplified the entire home buying and selling process with the end goal of making each real estate transaction approachable and easy to understand. Her business is built upon the belief in educating and empowering her clients to assist them in achieving their residential real estate goals.