Misconceptions about down payments continue to hinder millennials from owning a home.
Industry professionals at a recent Mortgage Bankers Conference cited the “20% Down Payment” misconception as “the greatest cause of confusion among first-time buyers.” In fact, a study conducted by United Wholesale Mortgage and Michigan State University found that 67% of millennials thought a 20% down payment was required. And 96% of respondents became more interested in purchasing a home after learning they could do so with a down payment as little as approximately two months’ worth of rent payments!
Other factors cited in the survey that discourage millennials from homeownership 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 it cost more to use a mortgage broker instead of going directly to a bank or retail lender. This is NOT accurate,” said UWM President and CEO Mat Ishbia. “It seems counterintuitive to think it’s cheaper to add a ‘middleman’ to the process; but mortgage brokers are 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.”
At Mortgage Wealth Advisors, we specialize in working with first-time homebuyers. We provide the education, guidance, and hand-holding that first-time buyers often desire. Plus, we offer mortgage products requiring down payments as low as one-percent of the purchase price!
We can help determine whether purchasing a home is right for you. And if owning a home is in your future, we will ensure your transaction goes smoothly and stress-free. You’ll receive accurate information, valuable advice, and a concierge experience. We’ll ensure your mortgage matches your needs, complements your financial plans, and helps you attain your financial goals.
Call us for a No Cost, No Obligation Consultation.
You’ll receive the same low rates and fees
as if you went to your “Big Bank.”
The big difference? Your loan will actually CLOSE.
Warren Goldberg is President of Mortgage Wealth Advisors, a Certified Mortgage Planning Specialist®, and a published author. His interviews include Blog-Talk Radio, Newsday, The Daily News, Anton Press, and the Long Island Herald. Since 1992, he’s been sharing his financial knowledge and wealth-building strategies, including how to properly use your mortgage as a financial tool. His clients regularly express their trust and appreciation by recommending friends and family call when in need of mortgage, real estate, and financial guidance.