Millennials desperately want to buy Springfield MO real estate, but severely underestimate what they need for a down payment on a home. According to Apartment List data and an article by CNBC, people in their 20s and 30s are not buying homes in droves simply because they don’t have the down payment money and credit. Eighty-percent of young people said they want to own homes. Yet, 68 percent have less than half the money saved for a down payment. Another 44 percent have absolutely nothing saved for a down payment on a home.
Figuring out your timeline
Based on current savings, some young people are a decade away from home ownership. In 10 years, the interest rates could increase. Since home affordability becomes a factor when interest rates rise, it’s important to scramble together the down payment money now. Experts even estimate that millennials in hot markets such as San Diego, San Francisco and Austin could wait 19 years to afford a home. Springfield MO is a popular city with greater affordability and employment opportunities for young buyers.
Asking friends and family for a boost
Although boosting a personal savings rate helps, some millennials also improve their odds and accelerate the timeline by asking friends and family to chip in. People getting married often request cash for a new home savings fund in lieu of presents.
At this time, there remains a shortage of starter homes in the lower price range. Young people interested in Springfield MO real estate often rely on special FHA financing and first-time home buyer programs because it’s possible to put down less money on a home. To save for a home, focus on long-term goals instead of short-term desires. Direct your time and make buying a home a top priority.
About the author Julie Pickens: I assist first-time home buyers and others interested in Springfield, MO Real Estate. For more tips on how to save up for a down payment on a home, please contact me. Thinking of selling your home? I have a passion for Real Estate and would love to share my marketing expertise with you!