Most people plan to invest in a house at some point in their life. When it comes to buying homes in the Denver and Colorado Springs areas, it appears that millennials are more reluctant to do so than prior generations. This is due in part to some misconceptions about the housing markets in those two cities that are making them not want to purchase a home.
Biggest Minsconceptions that Millennials Have About Purchasing a Home
- Homes are too expensive to purchase – FALSE. Because the cost of housing has increased over the past decade, Millennials feel that the cost of housing is purchase-prohibitive. However, statistics show that the housing market is cooling down and that’s ideal for individuals who’ve been holding off buying a home. When the public’s interest in buying declines, sellers typically drop their asking price. Although it’s difficult to predict where the market might be going, it’s a buyer’s market at the present time.
- I can’t afford to make a down payment on a home – FALSE. Rest assured, there are several programs that were specifically designed to enable individuals to make a down payment. Once you discuss your financial needs with a reputable mortgage broker, they can determine if you qualify for a local, state, or Federal Government down payment assistance program. There are numerous options available for these types of programs for FHA, USDA, and VA loans.
- I have to pay off my student loan debt first – FALSE. Many millennials assume that because they have student loan debt that their Debt-to-Income (DTI) ratio will be too high and that they won’t be able save enough to purchase a home. However, if you discuss your circumstances with a lender, you’ll quickly realize that there are numerous options available that can help you purchase a home. Although they will look at your DTI, they will also consider how much you earn, how long you’ve been at your current job, and how large of a down payment you can make.
- It’s cheaper to pay rent – FALSE. Many Millennials still choose to rent because they believe it’s more affordable than purchasing a home. Interestingly enough, paying on a mortgage often results in a smaller monthly payment, especially since the price of rent seems to be increasing annually. Furthermore, making monthly mortgage payments enables you to create equity while investing in property. On the other hand, paying rent doesn’t benefit a person in the long-term.
Buy a Home with Front Range Mortgage
If you have a good credit score, you can get the best interest rates on a housing mortgage. To learn more about the Denver and Colorado Springs real estate markets, call Front Range Mortgage at (719) 540-2020 today.