What’s Getting in the Way of Millennial Home Buying?

What’s Getting in the Way of Millennial Home Buying?

• Millennial consumers (between the ages of age 23 and 38) continue to have a profound impact on the real estate market.

• Among the findings is that lack of savings andstudent loans are two major factors slowing down the purchase process for Millennials.

Having money in the bank is a must when buying a home. Closing cost on average is 8% of the loan. I go by this rule when talking about how much money you will need to being to closing with you. The erm closing cost include expenses able the purchase price of the property. Fees for attorney , title insurance, taxes and other cost that you will need for the house. 8% of a $100,000 home is $8000. 8% of a $200,000 home is $160,000. As you can see here. You will need a good amount of money to get into a home. Cash is King make sure you have it in the bank when buying your home!

Student loans by themselves cannot prevent you from getting a mortgage. The effect of the student loans on your debt to income ration is a key deciding factor. Banks want you to be lower then 43% debt to income ratio. Just to recap monthly expenses / pre tax income = debt to income %.