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Uncovering the Secrets of Successful Homeownership

Your Digital Home Advisors

by zac folsom

What You Want To Know If You’re Pursuing Your Dream of Homeownership

A picture of home buyers meeting with the ZacFolsom Group in Kalamazoo, MI.

If you’re a young adult, you may be thinking about your goals and priorities for the months and years ahead. And if homeownership ranks high on your goal sheet, you’re in good company. Many of your peers are also pursuing their dream of owning a home. The 2022 Millennial & Gen Z Borrower Sentiment Report from Maxwell says:

“Many young adults have demonstrated their resolve to embark on the journey toward homeownership soon. More than half of millennials and Gen Zs plan to apply for a mortgage sometime within the next year.”

Let’s take a look at why homeownership makes the top of so many young buyers’ to-do list and what you need to consider to achieve your goals if you’re one of them.

Top Motivators To Buy a Home

Before you start the homebuying process, it’s helpful to know why homeownership is so important to you. The survey mentioned above sheds light on some of the top reasons why younger generations are looking to buy a home. It finds:

No matter which of these resonates the most with you, know there are many financial and non-financial reasons why you may want to buy a home. While your top motivator may be different than that of your friends, they’re all equally valid and worthwhile.

Key Obstacles and How To Overcome Them

Whether your homeownership goals come from the heart or are driven by financial aspirations (or both), it can still be hard to know where to start when you’re looking to buy a home. From understanding the homebuying process, to getting pre-approved, and exploring down payment options, it’s a lot to wrap your head around.

The same Maxwell survey also reveals key challenges for potential buyers. Thankfully, the knowledge and guidance of a trusted real estate professional can help you overcome both. Here’s a look at two of the hurdles potential homebuyers say they face:

1. The Mortgage Process Can Be Intimidating

In the Maxwell study, 33.37% said one of their obstacles was that the mortgage process is confusing or difficult to understand.

An article by OwnUp helps explain why the mortgage process is so challenging for buyers:

“There is a general lack of knowledge about home financing. Mortgages are a complicated topic with no one-size-fits-all answer. It’s difficult to understand the space, let alone determine what the right course of action is based on your unique financial picture.

While you may be tempted to do a quick search online to find instant answers to your questions, it may not get you the information you need to understand the full picture. Especially when it comes to financial advice, you want to lean on a true expert. Having trusted professionals on your side can help you to learn what it takes to achieve your dream of homeownership. Not to mention, an expert can give you advice specific to your situation, not generic advice like you’ll find online.

2. It’s Hard To Know How Much You Need To Save

In the Maxwell study, 45.75% believe they don’t have enough saved to cover their down payment or closing cost expenses.

What you may not realize is that, today, there’s a growing number of down payment assistance programs available nationwide to help relieve this pressure. A report from Down Payment Resource says:

“Our Q3 2022 HPI report revealed a 1.6% uptick in the number of homebuyer assistance programs available to help people finance homes, raising the number of programs to 2,309, a net increase of 36 over the previous quarter.”

Additionally, as the housing market cools, buyers are regaining some negotiation power and more sellers are willing to work with buyers to help with closing costs.  Understanding what’s out there and the options available may help you achieve your dream of homeownership faster than you thought possible.

 Tips For First-Time Home Buyers in Kalamazoo

1. Be Sure You’re Ready To Commit To A Loan

Should you get a mortgage, keep in mind one essential tip: ensure you have everything ready. The average term of a mortgage is 15 30 years. It is not really necessary to stay in your home long enough, but buying a house is a big commitment. Be sure you’re completely ready for home ownership before pursuing a mortgage.

First, consider if you’re prepared to be a resident of this city and home for a minimum of 5 years. If you have $3,000 saved for a rainy day, it will help to meet your basic expenses for three months. Do you have a stable income?

2. Don’t Skip The Preapproval

It may be tempting to rush right into a search for the ideal home, especially if this is your first time relocating and particularly if are under considerable pressure to leave your parents’ home. Nevertheless, it s highly recommended that you secure financing beforehand, since it can assist you to examine all the obtainable alternatives on the market and determine the most suitable home. Gaining a retention about prequalification from preapproval is also critical.

3. Save for a Downpayment

The Federal Housing Administration’s most important goal is assisting home buyers get their first home, which is why it assists borrowers with their down payment. If you qualify as a first-time home buyer, you may be able to avail of state government programs, tax breaks, and an FHA loan.

Where to Go From Here

If you’re serious about becoming a homeowner, know it may be more in reach than you think. Lean on trusted professionals to help you overcome challenges and prioritize your next steps.