What You Want To Know If You’re Pursuing Your Dream of Homeownership

by Jeremy Van Caulart

As a young adult, you may think about your goals and priorities for the months and years ahead. And if homeownership ranks high on your goal sheet, you’re in good company. Many of your peers are also pursuing their dream of owning a home. The 2022 Millennial & Gen Z Borrower Sentiment Report from Maxwell says:

“Many young adults have demonstrated their resolve to embark on the journey toward homeownership soon. More than half of millennials and Gen Zs plan to apply for a mortgage sometime within the next year.”

Let’s look at why homeownership makes the top of so many young buyers’ to-do lists and what you need to consider to achieve your goals if you’re one of them.

TOP MOTIVATORS TO BUY A HOME

Before you start the homebuying process, knowing why homeownership is so important to you is helpful. The above survey sheds light on some of the top reasons younger generations want to buy a home. It finds:

95% believe the cost of renting is too high
35% think owning a home is a crucial wealth-building tool
16% seek the sense of security that owning a home provides
37% plan to use it as an investment property

No matter which 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 differ from 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 financial aspirations (or both), it can still be hard to know where to start.

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 was confusing or difficult to understand.

An article by OwnUp helps explain why the mortgage process is so challenging for buyers:

“There is a general lack of knowledge about home financing. Mortgages are a complicated topic with no one-size-fits-all answer. It’s difficult to understand the space, let alone determine what the right course of action is based on your unique financial picture.”

While you may be tempted to do a quick search online to find instant answers to your questions, it may not get you the information you need to understand the whole picture. Especially when it comes to financial advice, you want to lean on a true expert. Having trusted professionals on your side can help you to learn what it takes to achieve your dream of homeownership. An expert can also give you advice specific to your situation, not generic advice like you’ll find online.

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.

You may not realize that today, there’s a growing number of down payment assistance programs available nationwide to help relieve this pressure.

Additionally, buyers are regaining some negotiation power as the housing market cools. Understanding what’s out there and the options available may help you achieve your dream of homeownership faster than you thought possible.

Bottom Line

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.