Top Concerns of Future Millennial Homebuyers
Millennial banking behaviors come up a lot when I’m researching for work. Take homebuying for example. When it comes to making this big purchase, the biggest many of us will ever make, we have it a little different than our parents. To let you better visualize what I’m talking about, ponder this data:
And you know what? Many of these are true for me too. I see me making a lot of big purchases in the next few years, but I’m a long way away from buying a home for a lot of different reasons.
How do you “C.U.” tackling this feat? Having plenty of resources available sure helps. Here’s what I want to know when it comes time to take the plunge and buy:
1. What does my mortgage cover, and what the heck is escrow? Okay, okay, so I actually know this one, but that’s only because my dad’s side hustle is real estate leasing. I’m listing this because it’s critical to understand exactly what you’re getting yourself into financially.
2. How much house can I afford? This is a huge one for me. I consider myself money-savvy, but how much can I really afford on my budget? And, how do I figure this out?
3. What are the unexpected costs associated with the purchase? Obviously there’s a down payment and closing costs, but what about Private Mortgage Insurance, Homeowners Insurance or Flood Insurance? Why do some mortgage providers offer home loans without PMI? More importantly, are there any benefits available to me, now that I’m a first-time homebuyer?
4. How can I be 100% sure the house won’t, like, fall over when I buy it? A good friend of mine was recently looking to buy a house. She found the PERFECT house for her, but wasn’t 100% sure about it, so she asked my dad to check it out. The house was listed very low, and after my dad looked at the AC/Furnace, roof and foundation, it was clear that my friend would be buying a dump. This was a pretty extreme circumstance, but what if the problem is more hidden?
5. What are my rights as a buyer? This goes back to point number four. If I, the buyer, take all the necessary steps to get into my new home but the seller withholds information, can I take any legal action against them? Is this something my lender or real estate agent will tell me?
6. What’s in it for me? Ahh, the typical self-centered millennial attitude. If there’s ever a time to think about yourself, it’s when negotiating for a house. With any big purchase, be it a Master’s Degree, a new car or a house, know the benefits and risk associated with buying instead of renting.
I don’t know the answers to all these questions, and even though I find myself researching online for answers, there’s really nothing quite like having a conversation with an expert. You can bet AECU’s upcoming homebuying seminars will answer your questions about homeownership, homebuying, and using your credit union as your best financial friend throughout the process.
Do you have any questions about homebuying? Tell us below, and while you’re at it, RSVP for our seminar here.