3 Millennial Misconceptions About BUYING a House

Student debt, 20% down, and home prices in Seattle. How the heck do we think about buying a house?! We address...


Millennials - guilty of "not saving money" and being "buried in student debt." Does this mean we're hopeless for buying a house? No. Chris Lord and I go over 3 common misconceptions about buying a house for young adults and HOW you can make home ownership possible.


SUMMARY: 

Misconception #1: I have too much student debt.

  • There's ~$1.5 trillion in student debt and the average student owes over $30,000 in student loan debt when they graduate. How the HECK do you get a house with this type of revolving debt?
  • This is a common question in the lending field, because it's so common. Student debt is looked at differently, depending on your situation. 
  • The good thing is, that loans are being approved with this type of student debt. 
  • So, what do you do? Talk to a lender, someone like Chris that can help guide you on what you could afford with this type of debt.

Misconception #2: I can't save 20% down!

  • 20% down on a $500,000 house is $100,000. WOW. You want to travel, you're paying rent, you're just getting going in your career, you have student debt, how the heck do you save THIS type of money?
  • Well, it would be nice to graduate with $100,000 in the bank and debt free, but reality is, it's hard. 
  • There are several programs out there that allow for less than 20% down.
  • Even in the competitive market of Seattle, it's possible to win and get into a house with less than 20% down. We're doing it every month!
  • So what do you do? Talk to a lender, someone like Chris that can explain these programs and give you an idea of what your monthly payments would equate to. 

Misconception #3: Seattle houses are WAY too expensive.

  • Seattle area housing IS very expensive. We just got crowned the hottest market in the nation for the 15th month in a row. 15 months! On top of that, the median price point is in the $800's! That's crazy!

  • Reality is, there are affordable options, it's just about setting the expectation. If you're a first time home buyer - you may not be able to get your dream house on the water quite yet. Understand where your budget can take you - whether that's sacrificing location or size.

  • Then, once you're in the housing market and growing wealth with your real estate, your dream house will be that much closer.

  • The truth is - it's easy to get started. Interest rates are VERY low, which as a buyer, is something that should be taken advantage of. As you build equity - you'll be able to take that into your next house. 



Are you thinking about starting your home buying journey? Reach out, we can help you. 


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