The millennial generation appears to be moving considerably slower than previous generations where purchasing a home in the Denver area is concerned. This is partially due to several misconceptions that make them reluctant to invest their money in the purchase of a home.
Research Before Investing in A House
This is why it’s so important to do some research before jumping in or procrastinating too long before buying. The following are 4 common misconceptions that millennials have about buying a home in the Denver area.
- Housing prices are too high in Denver – millennials seem to be under the impression that housing prices are way too high for the time being. Nothing could be further from the truth. According to the Denver Metro Association of Realtors as well as the Denver Post, the market has cooled down considerably over the past couple of years. This creates an ideal situation for the prospective buyer in that sellers tend to lower the asking price when there is less interest in the housing market.
- I don’t have the budget for the down payment – if you think you can’t afford the down payment on a home, think again. There are numerous programs that were developed in order to help prospective home buyers make the necessary down payment on a home. If you speak with a mortgage lender, they can determine whether or not you’d qualify for a local, state, or Federal Government program. There are plenty of down payment assistance programs available to coincide with FHA, USDA, and VA loans.
- It’s cheaper to rent than buy – seriously? Although this just isn’t true in most cases, the millennial generation is still clinging to the belief that renting is more affordable than buying. There are hundreds if not thousands of homeowners whose house payment is less than what their rent was, especially when you consider that Denver area lease and rent prices seem to increase annually. Keep in mind that when you’re making a house payment, you’re also building equity while investing in a property.
- My student loans have to be paid off first – according to an article published by “Market Watch”, 83% of non-homeowners in the Denver area blame their student loan for not being able to buy a home. Most millennials believe that their debt-to-income (DTI) ratio will be too high and that it will be almost impossible to save up the money needed despite all the options that are available.
Work with Front Range Mortgage
They understand the housing market in Denver and can assist you in getting the best mortgage rates for your new house. To learn more about how easy it can be to buy a home in the Denver area, call Front Range Mortgage today at (303) 500-1900.