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.
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.