It’s no surprise that many millennials are wary of homeownership. Not only are they struggling to pay student loans and retain stable employment, but many also witnessed their parents fight to hold onto homes during the 2008 financial crisis. A recent survey conducted by the MacArthur Foundation found that 76% of Millennials believe homeownership is more difficult for them than it was for older generations. However, 88% of those surveyed still aspired to buy a home, with 53% stating they viewed homeownership as a high priority.

Owning a home is a great opportunity—especially for young adults. In addition to the sense of accomplishment it provides, choosing to buy a home can increase wealth. As with any investment, the longer you own a property, the more likely you will enjoy a sizable return. Bridging the gap between millennials’ desire to buy a home and the perceived difficulty associated with the purchase requires research, preparation, and patience.

If you’re up for the challenge, our specialists have compiled a few helpful tips to aid in the homebuying process:

• Pay Off Small Debt: Prior to submitting your pre-approval application, it’s important to pay off small outstanding debts. This includes car payments, credit card debt, and any other monthly payments you may have. If you can pay off a portion of your student debt, go for it! If not, it’s unlikely you will be faulted.
• Set a Budget: Determine what you can afford, as opposed to what you think you can afford. As a general rule, you’ll want your total monthly mortgage payment to be less than 25% of your monthly income after taxes.
• Save, Save, Save: If you are determined to buy a home, you’ll need to have money set aside for a home inspection, down payment, surprise expenses, and closing costs.
• Get Pre-Approved: Most buyers are required to apply for pre-approval before obtaining a home loan. These loan pre-approvals are typically written with very little information and provide prospective buyers with a sense of what they can afford. Once you have a pre-approval rate, you can begin shopping for homes within that budget.
• Hire a Real Estate Agent: Hiring a qualified real estate agent can be a real game-changer. Not only will they negotiate with sellers and the bank on your behalf, but they will also help you navigate the real estate waters and offer unbiased advice. Best of all, no out-of-pocket cost is required, as real estate agents are paid a cut of the commission from the sale of the home.

If you’re ready to sell in Virginia or West Virginia, Greenways Real Estate & Auction is the company to call. Backed by over 60 years of property auction experience, also providing clients with the real estate listing service they need or finding the home they’ve always dreamed of. 

Visit our website or call us today at (540) 962-1155 to learn more about upcoming auctions and sales!