Tips for Younger Homebuyers: How To Make Your Dream a Reality

<article class="post-1037296 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-1037296"><span class="entry-date">May 7, 2024</span><div class="entry-header center-block text-center"><h1 class="entry-title">Tips for Younger Homebuyers: How To Make Your Dream a Reality</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=Tips+for+Younger+Homebuyers%3A+How+To+Make+Your+Dream+a+Reality&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Ftips-for-younger-homebuyers-how-to-make-your-dream-a-reality%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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<p>If you’re a member of a younger generation, like Gen Z, you may be asking the question: <em>will I ever be able to buy a home</em>? And chances are, you’re worried that’s not going to be in the cards with inflation, rising <a href="https://www.simplifyingthemarket.com/2024/04/22/what-you-really-need-to-know-about-home-prices-1/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">home prices</a>, <a href="https://www.simplifyingthemarket.com/2024/04/23/the-best-way-to-keep-track-of-mortgage-rate-trends/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">mortgage rates</a>, and more seemingly stacked against you.</p>
<p>While there’s no arguing this housing market is challenging for <a href="https://www.simplifyingthemarket.com/2024/03/22/3-helpful-tips-for-first-time-homebuyers-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">first-time homebuyers</a>, it is still achievable, especially if you have <a href="https://www.simplifyingthemarket.com/2024/04/09/the-top-5-reasons-you-need-a-real-estate-agent-when-buying-a-home/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">professionals</a> on your side.</p>
<p>Here are some helpful tips you may get from a pro.</p>
<h4><strong>1. Explore Your Options for a Down Payment</strong></h4>
<p>If a down payment is your #1 hurdle, you may have options to give your savings a boost. There are over 2,000 <a href="https://downpaymentresource.com/homebuyer-resource/navigating-down-payment-assistance-programs-a-homebuyers-guide/" rel="noopener noreferrer" target="_blank">down payment assistance</a> programs designed to make <a href="https://www.simplifyingthemarket.com/2024/04/08/dont-let-your-student-loans-delay-your-homeownership-plans/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">homeownership</a> more achievable. And, that’s not the only place you may be able to get a helping hand. While it may not be an option for everyone, 49% of Gen Z homebuyers got money from loved ones that they used toward a down payment, according to <em>LendingTree</em>.</p>
<p>And chances are you won’t need to put <a href="https://www.simplifyingthemarket.com/2024/02/26/the-truth-about-down-payments/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">20% down</a> (unless specified by your loan type or lender). So be sure to work with a trusted <a href="https://www.simplifyingthemarket.com/2024/03/01/the-first-step-getting-pre-approved-for-a-mortgage-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">mortgage professional</a> to explore your options, find out how much you’ll really need, and learn about any guidelines on getting a gift from loved ones.</p>
<h4><strong>2. Live with Loved Ones To Boost Your Savings</strong></h4>
<p>Another thing a number of Gen Z buyers are doing is ditching their <a href="https://www.simplifyingthemarket.com/2024/04/17/is-it-better-to-rent-than-buy-a-home-right-now-1/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">rental</a> and moving back in with friends or <a href="https://www.simplifyingthemarket.com/2024/04/25/is-a-multi-generational-home-right-for-you/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">family</a>. This can help cut down your housing costs so you can build your <a href="https://www.simplifyingthemarket.com/2024/03/25/what-every-homebuyer-should-know-about-closing-costs/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">savings</a> a whole lot faster. As <em>Bankrate</em> <a href="https://www.bankrate.com/homeownership/gen-z-and-homebuying/#homebuying-barriers" rel="noopener noreferrer" target="_blank">explains</a>:</p>
<blockquote><p><em>“. . . many have opted to stop renting and live with family in order to boost their savings. </em><strong><em>Thirty percent of Gen Z homebuyers move directly from their family member’s home to a home of their own, according to NAR</em></strong><em>.”</em></p></blockquote>
<h4><strong>3. Cast a Broad Net for Your Search</strong></h4>
<p>When you’ve <a href="https://www.simplifyingthemarket.com/2024/04/15/ways-to-use-your-tax-refund-if-you-want-to-buy-a-home/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">saved up</a> enough, here’s how a pro will help you approach your search. Since the supply of <a href="https://www.simplifyingthemarket.com/2024/03/28/is-it-easier-to-find-a-home-to-buy-now/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">homes for sale</a> is still low and affordability is tight, they’ll give you strategies and avenues you may not have considered to open up your pool of options.</p>
<p>For example, it’s usually <a href="https://www.simplifyingthemarket.com/2024/04/18/is-it-getting-more-affordable-to-buy-a-home/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">more affordable</a> if you consider a rural or suburban area versus an urban one. So, while the city may be livelier and more energetic, the cost of living may be reason enough to look at something further out. And if you consider <a href="https://www.simplifyingthemarket.com/2024/04/11/builders-are-building-smaller-homes/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">smaller homes</a> and <a href="https://www.simplifyingthemarket.com/2024/02/16/achieve-your-dream-of-homeownership-with-condos-and-townhomes-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">condos or townhouses</a>, you’ll give yourself even more ways to break into the market. As Colby Stout, Research Analyst at <em>Bright MLS</em>, <a href="https://brightmls.com/article/unlocking-the-door-to-starter-homes" rel="noopener noreferrer" target="_blank">explains</a>:</p>
<blockquote><p><em>“Being flexible on the types of home (e.g., a condo or townhome versus a single-family home) and exploring more affordable neighborhoods is important for first-time buyers.”</em></p></blockquote>
<h4><strong>4. Take a Close Look at Your Wants and Needs</strong></h4>
<p>And lastly, an agent can help you really think about your must-have’s and nice-to-have’s. Remember, your <a href="https://www.simplifyingthemarket.com/2024/03/11/finding-your-perfect-home-in-a-fixer-upper/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">first home</a> doesn’t have to be your forever home. You just need to get your foot in the door to start <a href="https://www.simplifyingthemarket.com/2024/03/13/your-home-is-a-powerful-investment/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">building equity</a>. If you want <a href="https://www.simplifyingthemarket.com/2024/03/04/what-to-know-about-credit-scores-before-buying-a-home/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">to buy</a>, you may find making some compromises is worth it. As <em>Chase</em> says:</p>
<blockquote><p><em>“An open-minded approach to house-hunting may be one way for Gen Z homebuyers to maintain some edge. </em><strong><em>This could mean buying in areas that are less expensive. Differentiating needs vs. wants may help in this area as well</em></strong><em>.”</em></p></blockquote>
<p>An agent will help you prioritize your list of home features and find houses that can deliver on the top ones. And they’ll be able to explain how <a href="https://www.simplifyingthemarket.com/2024/03/20/does-it-make-sense-to-buy-a-home-right-now/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">equity</a> can benefit you in the long run and make it possible to move into that dream home down the line.</p>
<h3>Bottom Line</h3>
<p>Real estate professionals have expertise on what’s working for other buyers like you. Lean on them for tips and advice on ways you can get ready to buy. As <em>Directors Mortgage </em>says,<em> </em>with that support you can make it happen:</p>
<p> </p>
<blockquote><p><em>“</em><strong><em>The path to homeownership may not be a straightforward one for Gen Z, but it’s undoubtedly within reach.</em></strong><em> By adopting the right strategies, like exploring down payment assistance programs and sharing living costs with relatives, you can bring your dream of owning a home closer to reality.”</em></p></blockquote>
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