Millennials are often thought of as the "renting generation." The fact is, millennials have good reasons for renting. Many are burdened by college loan debt and many also do not make enough to live comfortably. Coupled with their unfamiliarity with the home buying process, this can be a daunting combination for many millennials to deal with at once. Despite not being financially prepared to buy a home, millennials still aspire to own homes one day and will eventually become homeowners. So the question becomes: how do we help them get there? That's where The Millennial Mortgage Approval comes in!
3/4 of millennials say that owning a home is a priority. It's no secret that millennials have a lot of debt. A recent survey found that the average young adult in this generation has $42,000 in debt, and it's not uncommon to find folks in their 30s with as much as $200,000 in student loans. Despite this, half of millennials say that owning a home is a priority.
Millennials are more likely to own a home than Generation X was at the same age, and just as likely as Baby Boomers were. While there is an unfortunate stereotype that this generation is refusing to grow up or settle down into homeownership (despite the fact that those who want to buy homes are doing so at about the same rate as previous generations), research suggests otherwise: Millennials simply have less disposable income—and more of it going toward student loan payments—than previous generations did when they were younger adults.
In contrast with previous generations' focus on homeownership over renting, millennials seem more inclined toward renting while they navigate their financial obligations related to education. The decision by some to rent instead of buy isn't necessarily a bad thing: Renting gives people flexibility and allows them to live in areas where home prices may be prohibitively high for first-time buyers. This can allow young professionals who want to live near centers of opportunity better access than they'd get if forced into buying sooner due to high rents.
Millennial women are more likely to own homes than millennial men. If you're a millennial woman, you might have more luck scoring that dream home than your male peers. According to the National Association of Realtors (NAR), millennial women are the only demographic who purchase more homes than men. And they're more likely to obtain mortgages too—they make up 33 percent of first-time buyers and 28 percent of repeat homebuyers, compared with 26 percent and 22 percent for men respectively.
There's no single explanation for why millennial women own their homes in greater numbers than men. But there are some common explanations for why women in any generation buy their own homes at higher rates: They tend to earn less income, but they also tend to have higher credit scores and lower debt ratios (source). Millennial women are also more likely to seek out financial information and plan out their careers, which makes it easier for them to afford a home later on in life (source).
Millennials Renters, 1/2 say they plan to buy in the next 1-2 Years.
Of the 93 million millennials in America today, nearly 80% are living their dream existences in rental properties, a number that is expected to double by 2024. Our unique course puts financial leverage in your hands. Learn how to effectively negotiate with the banks for lower personal loan rates and underwrite your own mortgage application from our highly effective millennial-specific curriculum. We are expecting an immediate 60% increase in approved mortgages amondst our students, with an average loan rate reduction of .25%.
Still, there’s a huge misconception that millennials have never wanted to own homes.
Additionally, more than half of non-millennial homeowners say they wish they had purchased earlier in life than they did (including 31 percent who say they should have bought 10 years earlier). Guess what? It’s not too late! Millennials are young go getters who maximize making their own dreams come true. The survey also revealed things like:
Sixty-one percent of millennials would rather own a home sooner with a lower down payment and higher mortgage payments compared to 30 percent who want to wait until their savings for down payment is higher before buying.
More than half (58 percent) believe owning is cheaper when compared with renting, especially for long periods of time.
Fifty-six percent believe it makes sense for them to buy now versus paying rent out (compared with 38 percent who think renting makes more sense). Millennials want to buy homes, as soon as possible.
We all know that millennials are waiting longer to get married and have children. They are also more likely to live in urban areas and have more student loan debt than previous generations. These factors, combined with their different lifestyle choices, mean that many millennials want to save more money so they can buy the right house in the right place. How does a Millennial go about securing their Luxury Dream of Homeownership?
The Millennial Mortgage Approval Course is the only Digital Course in the nation to teach Millennials how to become THEIR own Mortgage Loan Underwriter. TMMA is an investment in your future with just 10+ hours of your time, which includes lesson pdfs, quizzes and instructor videos, that teach students how to apply for their dream home, and ensures success by utilizing effective negotiation techniques and tips in order to get the most value in the Home Buying Process. Instructed by a 16 Year Finance Veteran, TMMA guarantees its students will become better educated on how loan rates are determined and how to get approved at a better rate than most of their peers.