Home Buying In the Millennial Age: Light At the End of the Tunnel

Here are the facts: Millennials represent 43 percent of real estate buyers today. This percentage can fluctuate as quickly as the market, but do not let that dissuade you. That 43 percent went through a jungle of misinformation and confusion to become homeowners, and if asked? Some among those 43 percent still may not be able to describe the process of buying a home despite how obvious it may sound. 

The real estate market can be exclusive to those who may believe they understand it or do not feel the need. But how can those who do not understand this murky path to homeownership resolve this? 

Find inspiration, engage and discuss it in a context that makes sense to those in this day and age. Buying a home now is A LOT different from when your Great Aunt Margaret purchased a house in 1970. The informational rabbit hole that is the internet can take you on various tangents. Still, a relatable method of communication--through another who has only been exposed to real estate in the millennial age is a surefire way to connect the proverbial dots of real estate. 

Where should I start?

1. Find a mortgage influencer to who you relate to. Numerous real estate agents, mortgage influencers and tipsters can provide knowledge and various perspectives on home buying in this day and age. 
2. Prepare and evaluate your monthly finances. Bank statements, W-2s, Paystubs, List of debt vs. income. 
3. In cases where you are self-employed and planning on using bank statements to show proof of income, you must prepare at least one year's worth.

The last step is the most important before you dip your toe into the pool of real estate, as preparing your finances to obtain a mortgage will force you to look at your overall financial health. In this step, you'll be able to see clearly which current expenses you may have are necessary vs. unnecessary. Why? Because if you haven't already--now is the time to start saving and budgeting. In every case, you need to prove on paper to whichever lender you choose that you are a financially responsible borrower.

Savings? Who has that?

What if there isn't much room in your budget to save? If your student loans are not eating up your paycheck, it could be a wide array of other costs that inflation maximizes. The cost of living itself seems to rise on a daily basis. Do not give up immediately!  Although it can vary based on your location, numerous homebuyer assistance programs exist. So the next big question you have is: how do I know if I qualify for them? The best place to start would be at the Housing of Development website and to click on your state. There you will find available programs specific to the area you are looking to own a home in, and depending on that, will also determine if you could qualify for a program. Typically, here are the universal requirements:

• You must be a first-time home buyer.
• Have plans to occupy the home as a residence.
• Certificate of home buyer assistance counseling (this could also vary) based on the program you're applying to.

But wait--there's more! There are DPA (down-payment assistance programs), which you can read about here. The difference in down payment and homebuyer assistance is very little from what research shows, even in terms of qualifications. The most obvious difference is that DPA is specifically and only for the down payment on a home. Homebuyer assistance, however, can aid in not just the down payment but closing costs and other miscellaneous costs. In terms of closing costs, here is a quick rundown of what to expect:  A Rundown on Closing Cost & How They Effect You. 

Now, let's take a minute to breathe and reflect. In the world today, there is a ton of information and reading article after article could lead to home-hunting exhaustion, if not apathy. Let's not let it become that bleak. From Ryan Serhant to Nicole Beauchamp, established experts own Instagram pages dedicated to their specialty or even podcasts to serve real estate knowledge in a more digestible format. 

When you thirst for learning but also need a laugh, some influencers such as Jordan Nielsen (@laughing_nielsen) come to the rescue with comic relief. It might even be possible to start the learning process on real estate through memes. Whatever your learning process, find the influencer that speaks to you and caters to your demographic. For example, even if educational, if you're planning on buying a home in rural Minnesota, it may not always be efficient for you to solely follow an influencer who specializes in New York City real estate.  

Free isn't always free

Remember to read the fine print on any program you may apply for, especially if you're balling on a budget. If you were approved and received financial assistance in purchasing your home, there might be circumstances in which you would have to pay the money back. For example, specific programs stipulate that if you are to move out and sell the home you received assistance for, you will have to pay the money back. 

Other hoops you have to jump through could exist, depending on the program you qualify for and where you plan on buying a home. 

Find your mortgage destiny with a Pro

Above, Jordan Nielsen was mentioned, who has an incredible vault full of real estate memes, but don't stop there.  You may be familiar with Barbara Corcoran from the reality show Shark Tank is known as the Real Estate Queen. Barbara's digital presence is a force to be reckoned with on virtually every platform that matters these days: Instagram, Youtube and TikTok. Her years of experience bring a historical perspective while also keeping a pulse on the current industry. In addition to published books, her podcast can be followed at this link. 

Another real estate expert star on the rise is Sharelle Rosado.  Sharelle is the founder and CEO of her company Allure Realty. In addition to being a force on every social platform, she hosts the Netflix show Selling Tampa. Ariane Ellsberry, another guru who stormed the real estate world, covers the Atlanta, GA, area. 

Through following the guru's social media, researching programs and starting a budget--buying a home is a journey. When you see that you are a part of a community that includes others searching for the same answers as you, there could be too many answers out there, and some possibly not for you. Instead, think of how to find solutions specific to your situation. 

Here are additional real estate gurus to follow into your home owning dreams:

• https://www.facebook.com/MillennialMarkJones/grid
• https://chrishell.com/
• https://www.tracytutor.com/