first time home buyer

Millennials and Mortgage

Content couple eating pizza on floor

Content couple eating pizza on floorTimes are changing and so are the home buying options for millennials. Home ownership is a big stage to take. It means you are an adult and are responsible for making mortgage payments on your personal palace. A place to make memories with loved ones or witness your company flourishing (if you are acquiring property for business purposes), the investment is an exciting one.

According to Politifact.com, affordable housing is a challenge faced by many. In fact, less than 13% of millennials are proud to be homeowners nationwide. Nonetheless, homeownership options are being made available to millennials. Furthermore, financing is an option that could lead to you making the most important investment of your life.

Why are millennials such an integral component in the mortgage sector?

Everyone craves the American dream and millennials are no different. Home ownership for millennials aged 35 and under is decreasing, but things need to change. Younger people owning homes could mean fantastic things for the economy. Generally, a homeowner will have been born sometime between the 1980’s and mid-2000’s. For a huge chunk of them, now is the time to be starting a family and settling down.

Consider this – millennials account for approximately 80 million people in the U.S. alone. This is the largest population of them all! The more educated they are on the subject of financing, mortgages, and home ownership, the higher the chances of them standing out to a financing option for consideration.

Mortgage Facts Millennials Must Know

If you are on the fence about becoming a homeowner for the very first time, you should be up to scratch on your millennial mortgage knowledge. Property hunters aged in their 30’s are searching for a place to call “home” and this group of real estate-hungry people cannot be ignored. Take the following facts into account to ease your mind about mortgage approval for millennials:

Down Payments need not be huge. Millennials can get a chance at homeownership if they secure the investment by making a down payment on the purchase price.

Buying properties for lower prices could aid you in building equity. This equity can be put towards mortgage adjustments, should you wish to close one deal and start another.

Credit score does affect your eligibility. Nonetheless, there are a few ways in which you can build your credit score to avoid higher interest rates. Start making the smallest of repayments on any bills or outstanding debts you have to improve your chances at securing a home mortgage.

Separating the Myths from the Facts

Instead of becoming perplexed by the whole situation as a millennial in the home-hunting stage, know what is a myth and what is a fact. Below, we debunk some common myths:

Buying is more expensive than renting - No, it isn’t if you think long-term and select a low interest rate mortgage.

Payment for buying is higher - Not necessarily; some flexible loans have small starting interest rates.

The process is complicated – This is what financing experts are there for. They will guide you through the process seamlessly.

Since millennials are the biggest group of potential homebuyers out there right now, understanding what financing options are available is essential. In order for this to be achieved, not only do they need to be on top of their finances but also, they ought to proactively engage with lenders who can convince them to make that all-important transaction.

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How to Make Buying Your First Home as Simple as Possible

Buying your first home is a huge milestone, and an incredible feeling once it’s completed. During the process, though, it can be kind of daunting. As an FTHB, how can you make things as simple and painless as possible? Here are a few tips.

Check Your Credit. When you apply for a home loan, the bank will run a credit check to see what your financial situation is, and how likely you are to make your mortgage payments on time. So that there are no surprises, do your own credit check first. There are a number of sites that offer a free credit report that you can look over. If it turns out your credit score is too low for a regular loan, you might consider applying for an FHA loan, which caters to those with lower credit scores and allows for a much lower down payment. (more…)

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Saving up for your First Home

Saving up for your First Home

Saving up for your First HomeBuying your first home is an exciting milestone. This is something which is part of the American dream and something many strive for. In order to make this dream a reality, you have to prepare for it. Saving the money is the hardest part of getting ready to buy a new home. Here are some top tips on how and what to save before you buy your first home.

Reasons to Save

When you go to apply for a mortgage the bank will look at several things. They want to see if you are financially stable and ready for the obligation. In order to look solid you should:

• Have a low debt to income ratio

• Have a strong credit score (more…)

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First Time Home Buyer Tips

First time homebuyer - Paramount Equity®

Obviously, buying your first home is one of the biggest decisions of your life, and a significant amount of consideration should go into the process. You’ll hear tips from family and friends as you make the decision to become a homeowner, but experts can also offer a few first time home buyer tips.

Know What You Can Afford

Analyzing your budget should be the first step once you decide to take the plunge into home ownership. There are online tools and mortgage calculators you can use to figure out what your monthly mortgage payment will be, based on the amount borrowed, loan term and interest rate. It’s wise to play around with the figures to see how your monthly payment would be affected by borrowing $5,000 less, or decreasing the number of years. (more…)

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