About 50 percent of millennials in the last two years have bought or refinanced a home or plan to do so in the next couple years, a AAA survey shows.
Many say they want a house because they want to start a family, are having rent fatigue and or are looking to live in better neighborhoods.
Over 70 percent of Florida millennials seek financing when trying to buy a house and home mortgages often overwhelm them. They are anticipated to spend between $100,000 and $299,999 on their house.
Some factors millennials are looking at are low interest rates, low monthly payments and down payments.
“Knowing the right questions to ask when applying for your first home mortgage is critical,” said Dan Reed, Vice President of Lending for AAA. “Finding a trusted mortgage lender who will not only find the best loan for you but thoroughly explain the terms of the loan options available is [important].”
AAA offers some advice for young potential home buyers.
- Start early. Spring is one of the peak times for real estate
- Look past low rates. Low rates are important but also ask about other fees like application, title insurance and attorney fees.
- Ask about preapproval. A preapproval letter shows the bank is willing to loan you the money for the house.