Younger people and house purchases

On Behalf of | Feb 6, 2018 | residential real estate

Millennials living in Florida are not putting off their home purchases because of an affinity for avocado toast. In many cases, young people are choosing to pay off their student loans or other debts before they decide to go into debt buying a home. In fact, only 39 percent of millennials are able to afford the 20 percent down payment that is generally required for a traditional mortgage.

Student loans are a major concern for millennials who do not own their own home. Those who may be able to afford a mortgage and their student loan payments may not qualify. This is because the combined payments may cause their debt-to-income ratio to exceed lender guidelines.

One common reason why millennials may not own homes is because they aren’t married yet. Traditionally, marriage is the impetus for buying a home. However, 55 percent of those between the ages of 25 to 34 don’t live with a partner Finally, individuals may not choose to buy a home because they don’t have the credit to do so. Some may lack a credit history because they are worried about carrying credit card debt in the aftermath of the Great Recession.

Those who decide that now is a good time to buy a home may want to work with a real estate agent and an attorney. This may make it easier to find homes in a buyer’s price range as well as learn more about different mortgage options. When it comes time to close on a deal, an attorney may review the mortgage and purchase contract terms to ensure that a buyer understands what they mean.