Despite the low prices of homes recently, many millenials are still struggling to become homeowners. In the new analysis conducted by NerdWallet, it was revealed that since many of them came to age during the housing crisis and the Great Recession, they were conditioned to believe that most of them cannot afford to buy homes. However, according to Pop Sugar, the analysis revealed that the median age for the first-time homebuyers are the same for the past four decades: ages 30 to 31 years old.
The analysis also revealed that many millenials are particular with the issue of down payments. According to the study's co-author Chris Ling, many millenials are unaware of the different financing options available today. There are tons of options for purchasing a home which does not involve 20 percent down payments. As a matter of fact, it was revealed that about 30 percent of all home buyers only put down 3 percent or less on the cost of the property.
According to USA Today, millenials find the mortgage process overwhelming, and they do not realize that asking for help can be easily done online. Ling said that the Internet is an extraordinary resource, and it has transformed home buying in a good way, providing a wide array of tools which can help young home buyers make the leap to homeownership.
It was also said that the Consumer Financial Protection Bureau can provide a lot of information and guide millenials through the process. It also offers a step-by-step guide in home buying from the U.S. Department of Housing and Urban Development.
There are also online mortgage calculators, and millenials can research how much the monthly payments should cost to help them understand the process. What many do not realize is that most 25- to 30-year-olds are already making enough money to cover the cost of median mortgage.
