With Generation Z (those born from the middle or later part of the 1990s and the early 2010s) coming of age and ready to buy a home for the first time, we want to help you feel safe, secure, and stress-free when it comes to being a first time homeowner! The whole process may seem overwhelming but it does not need to be! It also does not have to be a huge financial burden, either. We will help break it down for you so it seems simpler.
To start with, most people get very worried about their down payment. From multiple studies, the majority of people are not well informed with that amount of money they need for a down payment. The majority of people have grossly exaggerated the amount. The actual down payment median for a first time homeowner is approximately 7% of the total loan. So for a $150,000 mortgage, that would be $10,500. While that might seem like a “scary” amount, if you start saving now, you will see it is not an absurd amount of money. Take the saving process in baby steps. This stems from a 20% down myth that most people think is the solid truth. Because of this, most people (especially those in Generation Z) put off buying their first home until they have 20% down. While this will help them in the long run, it is not something that needs to be done. First time homeowners are usually blessed with low down payment options. This is something they should take advantage of.
Buying a home for the first time is a rather achievable and realistic goal for those in Generation Z. Those in this generation also have a strong economy and job market on their side. (The current unknown situation at hand is exactly that – unknown. We are unsure of how long it will last and want to show you being a first time homeowner at a young age is possible!)