Millennials could make up 43% of home buyers taking out a mortgage by the end of 2018.
- Nearly half of millennials (now between the ages of 20 and 37) live in suburbs.
- New Home Inventory is low… very low. However, builders are trying to find a way of increasing construction of new, entry-level homes to accommodate the growing need. This is good news as would-be buyers have been frustrated in their search for a home that meets their needs—and their budget.
- A large portion of millennials —slightly less than half— are already purchasing their second or third homes (wow!)
Millennial Mortgage Check-list: 2018
1. Check your credit score.
A credit score is a numerical representation of your credit report. FICO scores range from 300 to 850, and the higher your score, the better; It’s best to use 30 percent or less of your total available credit.
2. Don’t open new credit cards.
A new credit card could put you in danger of not qualifying for your home loan – or at the very least – not getting the best rate possible.
Besides the mortgage loan and down-payment – you should also set aside money for unexpected repairs and costs.
4. Interview potential real estate agents.
If your neighbor, relative, or friend of a friend happens to know (or is) a real estate agent, that’s great. This person might be the perfect agent for you. But you owe it to yourself to shop around. “Look for [an agent] who is knowledgeable, good, integral, and can assist you in reaching the goal of homeownership,” says Chantay Bridges, a Los Angeles, CA, real estate agent. “Make sure they are not a novice, new, or just unaware of how to do a specific transaction.” The end of the year is usually a slow time for agents, so chances are they’ll be more accommodating to making an appointment on your schedule. (trulia)
5. Find a Mortgage Lender & get pre-approved!
Before you start looking (this means online too!) you will want to find a mortgage lender. Often times your realtor will be able to introduce you someone they work with. Don’t be shy, ask questions and give them a solid interview (they won’t mind!).
What documents will you need?
- Tax returns for the past two years
- W-2 forms for the past two years
- Paycheck stubs from the past few months
- Proof of mortgage or rent payments for the past year
- A list of all your debts, including credit cards, student loans, auto loans, and alimony
- A list of all your assets, including bank statements, auto titles, real estate, and any investment accounts
It’s wise not to change jobs, make big purchases, or miss any debt payments as you prepare to get a mortgage.