4 Misconceptions Millennials Have About Buying a Home in Denver
When it comes to buying a home in Denver, millennials are moving much slower than previous generations. Part of the reason is that there are some major misconceptions that make millennials not want to buy a home. Before you wait too long to buy or jump into the market with little knowledge, you should try to find out everything there is to know about buying a home. That’s why in this blog, we want to help debunk the top four misconceptions millennials have about buying a home in Denver.
Misconceptions Millennials Have About Buying a Home in Denver
1 – Denver’s Housing Market is Too High to Buy The latest craze in the Denver real estate market is talking about how high the market is. Many people, specifically millennials, are under the impression that the housing market is too high to buy right now — however, that’s no longer the case. According to the Denver Post and the Denver Metro Association of Realtors, the market is beginning to cool down. This is great for buyers in the area because when there’s less interest in a home, the seller will typically lower their asking price. It’s hard to predict the future when it comes to the housing market, but right now it’s in the buyer’s court.
2 – Paying Rent is Cheaper A lot of millennials are still paying rent because they think it’s more affordable than buying a house. However, paying off your mortgage can actually result in a lower monthly payment. Especially because the rent prices in Denver seem to increase every year. Also paying off your mortgage each month allows you to invest in a property and create equity, whereas paying rent does not benefit you in any way longterm. If you’re already paying a significant amount in rent each month, you should definitely look into becoming a homeowner.
3 – I Can’t Afford the Down Payment If you’re worried that you can’t afford the down payment on a house, then rest assured. There are many programs designed to help you make the payment. Once you speak with a mortgage broker, they can help you determine if you qualify for a local, state or federal program. Through FHA, USDA, and VA loans, along with down payment assistance programs, there are plenty of options out there. The FHA loan can help you lower your down payment by 3.5 percent. The USDA loan could help so you don’t have to pay any down payment at all. Then the VA loan is for veterans that have served in the military and can help with the payment.
4 – I Need to Pay My Student Loans First According to Market Watch, 83% of non-homeowners said the reason they can’t buy a home is because of their student loan debt. Many millennials believe that because they have to pay off their student loans, they will have a high DTI and won’t be able to save enough money to buy a house. However, once you meet with a lender, you’ll see that there are a lot of options out there that can help you buy a house, even with student loan debt. The lender will take a look at your DTI, but they will also consider how much money you make, how long you’ve been at your job, and how large your down payment is before they determine if you’re eligible for a loan. This means your DTI isn’t the only factor used when it comes to getting a loan for your house.
Find a Home Today! Are you ready to start your search and find a home today? Buying a home in Denver can be easier and more affordable than you think. Plus, now that you know the truth about buying as a millennial, you can look into the best options for you. If you’re looking for homes for sale in Denver CO, give West + Main Homes a call. We’re Denver’s top real estate firm and we help people find and sell homes throughout the Denver Metro Area. When you’re ready, give us a call at 720-299-6635 or send us an email at email@example.com.