Pursuit Of Homeownership
For younger and older adults alike, you may be thinking of goals and achievements you would like to accomplish. For a lot of these Americans, homeownership, or the pursuit of homeownership, is on this list. The pursuit of homeownership ranks high on the goals sheet for many young adults and their peers. According to the 2022 Millennial & Gen Z Borrow Sentiment Report 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.”
Over half of the generation that is able to is looking to apply for a home mortgage in the next year. Let us take a look into what homeownership has to offer and why the pursuit of homeownership is such a high priority for some.
Reasons People Aren’t Pursuing Homeownership
There are a few main reasons why people want to start the pursuit of homeownership. For new buyers, move-up buyers, and all those in-between, there are some common reasons for buying. The survey mentioned above allows you to get a closer look on some of the reasons why the younger generations might be looking to buy. The survey finds the following statistics:
- 95% believe the cost of renting is too high
- 35% think owning a home is an important tool to gain wealth
- 16% seek security that is provided by homeownership
- 37% plan to use it as an investment or rental
Whichever reason that coincides with your goals, just know that there are many tangible and intangible aspects to homeownership. There are many reasons to buy a home outside of the ones listed above as well.
Pursuit Of Homeownership Problems
Whether you believe in homeownership as a security or a wealth building tool, it can be hard to know when to start. Contacting a real estate professional can get you started on your homeownership journey. Having a solid understanding of the homebuying process, the pre-approval process, and payment options allows you to be an educated buyer.
The same survey as mentioned above reveals the biggest challenges for those interviewed. Thankfully, real estate agents have the knowledge and guidance to help potential buyers overcome problems. Here are two of the biggest problems:
The Mortgage Process Can Be Intimidating
In the survey from Maxwell, 33% of people said one of the biggest challenges was the mortgage process. Knowing about it and trying to understand the mortgage process is hard unless working with professionals. An article by OwnUp helps explain the process of applying for and obtaining a mortgage. They provide this as help:
“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.”
Saving For Homeownership Is Hard
In the same study, close to 50% of participants said they did not believe they had enough saved for closing costs, down payment, and other expenses. What many people do not realize is that you do not need a 20% down payment anymore to buy a home. Also, most people do not know that closing costs are expected to be 2-5% of closing price. 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.”
For those serious about becoming a homeowner, know it may be more achievable and in reach than you anticipated. This is when you should lean on your real estate industry professionals to help you along the way. Feel free to reach out to Premier Homes Team in Louisville, Kentucky for help in your homebuying process.