Spring is a time when many excited buyers enter the housing market. Others continue dreaming about the home they'd like to buy. The truth is, many potential buyers continue to dream longer than they need to. Working with a trusted real estate professional can help ease concerns and make the process of home-ownership attainable and easy to understand.
A recent survey conducted by Ipson and Freddie Mac reveals the confidence level of Gen Z and Millennial buyers regarding the home-burying process. The graph below shows the breakdown of top results, clearly indicating there's a significant portion of younger buyers who are not yet confident with some of the steps in the home-buying process.
Between the home-buying process and mortgage process, there are 230 possible steps in a transaction. With trusted professionals on your side, you certainly don't have to know the 230 steps to have a successful experience.
There are many reasons why these steps can change as you move through each one. Depending on your personal circumstances, the terms or your mortgage, and the type of loan you use, the pat you take may need to vary. That's why guidance and support from the experts is key.
In addition to the process itself, respondents in the survey definitely expressed concerns about understanding the types of loans available. Here are just a few of the basic loans to consider. Be sure to speak with your lender about the specifics of what will work best for you.
FHA LOANS guaranteed by the Federal Housing Administration for first-time buyers. They generally enable qualified borrowers to enter the housing market with a lower down payment.
CONVENTIONAL LOANS usually require a larger down payment. Repeat buyers usually use these types of loans since they have an established credit history as well as more money from the sale of the previous home (called equity) for a bigger down payment.
VA LOANS available for Veterans of the U.S. Armed Forces and their spouses. They are guaranteed by the Department of Veteran Affairs.
USDA LOANS are for those living in a rural and suburban area. A qualified lender can issue a USDA home loan, and they are guaranteed by the United States Department of Agriculture (USDA).
Interests rates also popped up as a common area of confusion among Gen Z and Millennial respondents in the survey. With today's rates hovering at near historic lows, it's a fantastic time for buyers to get more house for their money int the current market. Why? When mortgage rates are this low and wages are increasing as they are today, overall affordability increases, enabling home buyers to stretch their mortgage dollars further. It's just another area where a trusted professional can help simplify the process and give guidance along the way.
There are many possible steps in a real estate transaction, but they don't have to be confusing and overwhelming. To understand your best course of action, let's get together today to ensure you have a trusted adviser who will help you feel confident and informed at every turn. You can schedule your free / non-obligatory consult by calling (720) 305-0757.