Get free access to our world class MLS search tools, save your favorite listings, create saved searches & much more!

Down payment misconceptions continue to hinder millennials from owning a home

Posted by Mastura Zaini-Roberts on Wednesday, May 31st, 2017 at 4:26pm.

The misconception about down payments continue to hinder millennials from the possibility of owning a home.

An outlook study conducted by United Shore Financial Services along with Michigan State University found out that a whopping 96% of its respondents became more interested in purchasing a home after finding out that down payment could actually be the same as two months’ worth of rent.

Industry professionals at a recent Mortgage Bankers Association (MBA) conference cited the belief that a 20% down payment was required to get a mortgage as “the greatest cause of confusion among first-time homebuyers.” This was evident in United Shore’s survey, as 67% of millennials thought the 20% down was indeed necessary, while only 7% were aware that a down payment can be 5% or less.

“Millennials don’t need to put down 20% to buy a house,” said Brad Pettiford, communication strategist at United Wholesale Mortgage (UWM). “They don’t need to go to a bank to get a mortgage. There are several misconceptions that young people have about the homebuying process, and I think a big part of that is because of what we grew up hearing from our parents.”

Aside from the down payment misconception, other factors cited in the survey that discourage millennials from home owning include worrying about getting approved for a mortgage (67%); being intimidated with the responsibility of owning a home (63%); and fear of not paying mortgage on time (53%).

“A sizable portion of respondents thought that it costs more to use a mortgage broker instead of going directly to a bank or retail lender, which isn’t accurate,” said UWM President and CEO Mat Ishibia. “It seems counterintuitive to think it’s cheaper to add a ‘middleman’ to the process, but mortgage brokers are actually able to offer more competitive wholesale pricing to borrowers and aren’t held captive to one lender’s pricing or products. They truly can shop around to find the best deal for each borrower’s situation.”

 

by Anna Sobrevinas31 May 2017
http://www.mpamag.com/news/down-payment-misconceptions-continue-to-hinder-millennials-from-owning-a-home-69083.aspx

 

Mastura Roberts
(702) 919-5400
offers@greatlasvegashomes.com

Team Leader, The Tonnesen Team
Berkshire Hathaway HomeServices, Nevada
3185 St Rose Pkwy #100 Henderson, NV 89052

With over 30 years of experience helping families call Las Vegas "home!"



Related Blog Posts

Just Sold Las Vegas Home – 6135 Corbin Avenue Las Vegas, Nevada 89122

Jacqueline Goodman, a star realtor on the consistently #1 Tonnesen Team at Berkshire Hathaway HomeServices, Nevada Properties, is proud to announce that she has a successfully closed escrow for her sellers on a beautiful one-story detached Las Vegas ranch home in the highly desirable guard-gated community of Stallion...

Beware Homeowners - Judicial Foreclosures Come to Las Vegas!

Nevada has always been a non-judicial foreclosure state.  If a borrower was past due, all the mortgage holder had to do was produce copies of the appropriate documents and file foreclosure notices, and within approximately 5 months the foreclosure sale took place at the county steps. There was no right of redemption f...

Just Sold Las Vegas Real Estate – 6862 Apogee Ridge Court Las Vegas, Nevada 89135

Twenty years ago the Ray family had an incredible opportunity to leave Las Vegas and move to Southern California. But, after nearly two decades away, the pull of aging parents, children and even grandchildren grew strong enough for the Rays to reconsider a move back. So here was their new challenge, how do you come ba...

Las Vegas's Economy Is on the Brink of a Boom -- Bloomberg

By: Conor SenJanuary 3, 2018, 8:00 AM PSThttps://www.bloomberg.com/view/articles/2018-01-03/las-vegas-s-economy-is-on-the-brink-of-a-boom      ...

February is Best for Housing Bargains

Typically winter months have a higher number of housing bargains due to stressful weather conditions and lack of competition, with February coming out on top as the month with the most housing deals. In fact, a recent study by Attom Data Solutions looked at the sales of 50 million homes from 2000 through 2016 and...

Leave a Comment

Have a Question?

Contact Us

Follow Us