Between the 2008 financial crisis, historic student loan debt levels, and the major effects that COVID-19 had on the American economy, many millennial consumers feel like they’ve been frozen out of the housing market. According to Bankrate, “despite millennials’ large numbers and their being the prime age for home acquisitions, baby boomers are now the most active generation of homebuyers in the U.S.” For millennials, it’s easy to be pessimistic about their chances of homeownership. Here’s what some millennial homebuyers are doing to stay competitive in 2023, 2024, and beyond.
Savvy Millennial Homebuyers Know Where to Look
Millennials are the generation between Generation X and Generation Z. (That’s why they’re sometimes called “Generation Y.”) According to a survey by Bankrate, however, many prospective home shoppers of the millennial generation are willing to set realistic expectations for their homeownership dreams.
Among the survey’s findings: 33% of millennials surveyed were willing to buy a fixer-upper to attain affordable homeownership, and another 32% were willing to look so far as to move out of state! In a tight housing market like the one millennials have gotten used to, making big choices like investing in repairs to a new home or downsizing by opting for one less bedroom.
If you are a millennial who wants to get into homeownership, here’s a tip: the higher your FICO (credit) score, the more likely you are able to potentially have access to favorable loan terms. You may check your credit score for free by requesting a report from the major credit bureaus. According to the Consumer Financial Protection Bureau, you may access “one free copy of your credit report each year” by going to AnnualCreditReport.com.
How Do I Make Sure I Have the Highest Credit Score I Can?
While you save for a down payment, take other prudent steps like keeping your credit card usage low, and making any student loan payments on time. (Remember the federal moratorium on student loan payments ended in 2023!) For your other homebuying needs, consider meeting with a loan officer from The Federal Savings Bank. They may help you review your credit score and evaluate your current, near-future, and long-term housing possibilities.
Contact us now for a consultation and make a plan to get yourself into the home you’ve dreamed of.
Subject to credit approval. Terms and conditions may apply. Property insurance is required on all loans secured by property.
This article is intended for general informational and educational purposes only and should not be construed as financial or tax advice. For more information on financial planning or investment advice, consult a registered investment advisor or financial planner. For tax advice, please consult a tax professional.
This information is intended for educational purposes only. Products and interest rates subject to change without notice. Loan products are subject to credit approval and include terms and conditions, fees and other costs. Terms and conditions may apply. Property insurance is required on all loans secured by property. VA loan products are subject to VA eligibility requirements. Adjustable Rate Mortgage (ARM) interest rates and monthly payment are subject to adjustment. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to you individual situation.
