Homeownership is an important life milestone for many young adults. Achieving this goal can often require careful planning and preparation – particularly when it comes to budgeting, understanding your credit score, and researching the mortgage process. By taking the time to understand these basics of homeownership, you’ll be setting yourself up for success in the long run.
Let’s take a look at why homeownership makes the top of so many young buyers’ to-do list and what you need to consider to achieve your goals if you’re one of them.
Top Motivators To Buy a Home
Whatever your motive for wanting to buy a home, the decision is a major one. For many people, it may be the largest purchase they ever make. While becoming homeowners can provide numerous financial and emotional benefits, owning a home also carries a certain level of responsibility and commitment. Homeowners must work hard to maintain their homes, stay on top of repairs, and make sure their finances are in order.
It’s important to understand the motivations behind your homebuying decision. Doing so will help you achieve a balanced approach that allows you to take advantage of the potential benefits while still being mindful of the risks associated with homeownership. While everyone has unique reasons for wanting to buy a home, there are four primary drivers that tend to be the most common motivations.
- 95% believe the cost of renting is too high
- 35% think owing a home is an important wealth building tool
- 16% seek the sense of security owning a home provides
- 37% plan to use it as an investment property
No matter which of these resonates the most with you, know there are many financial and non-financial reasons why you may want to buy a home. While your top motivator may be different than that of your friends, they’re all equally valid and worthwhile.
Key Obstacles and How To Overcome Them
Whether your homeownership goals come from the heart or are driven by financial aspirations (or both), it can still be hard to know where to start when you’re looking to buy a home. From understanding the homebuying process, to getting pre-approved, and exploring down payment options, it’s a lot to wrap your head around.
The same Maxwell survey also reveals key challenges for potential buyers. Thankfully, the knowledge and guidance of a trusted real estate professional can help you overcome both. Here’s a look at two of the hurdles potential homebuyers say they face:
1. The Mortgage Process Can Be Intimidating
In the Maxwell study, 33.37% said one of their obstacles was that the mortgage process is confusing or difficult to understand.
Finding the right financial advisor is key to getting the best advice. When looking for a financial advisor, look for one with specific experience in helping people achieve homeownership. Ask questions about their past successes and how they can help you personally apply that knowledge to your own situation. Additionally, a good financial advisor should be able to provide you with resources and contacts that can help you in the process. Having a thorough understanding of available government grants, financing options and down payment assistance programs is essential in achieving your goal of homeownership.
2. It’s Hard To Know How Much You Need To Save
In the Maxwell study, 45.75% believe they don’t have enough saved to cover their down payment or closing cost expenses.
What you may not realize is that, today, there’s a growing number of down payment assistance programs available nationwide to help relieve this pressure.
Additionally, as the housing market cools, buyers are regaining some negotiation power and more sellers are willing to work with buyers to help with closing costs. Understanding what’s out there and the options available may help you achieve your dream of homeownership faster than you thought possible.
If you’re serious about becoming a homeowner, know it may be more in reach than you think. Lean on trusted professionals to help you overcome challenges and prioritize your next steps.