There’s no doubt that things are constantly changing in the homebuying market. The one thing you can rely on are the many benefits of homeownership. A home will always be a great investment for your future and it’s never too soon to prepare for that big step. Gen Z is beginning to hit the stage in life where this step is possible and actually can’t wait to make the move. In fact, 87% want to own a home in the future according to National Mortgage News, and 43% plan to buy a home in the next five years based on a June 2021 Radian survey. Plus, when compared to millennials, Gen Zers have more buying power now than millennials did when they were 25. If you’re in this age group and anticipate becoming a new homeowner in the future, remember age is just a number! And with the friendly, knowledgeable team of experts at New Tradition Homes, it’s all a matter of being prepared.
4 Important Tips for Gen Z on How To Save For a House
You may have the money, but do you have the credit? A good credit score will help you save thousands in the long run. It’s crucial in determining how much you can borrow for the loan and the interest rate on that loan. The higher the score, the better the financing options.
While there are certainly mortgage lenders that will work with a low score, it’s definitely worth hiking your score up before shopping homes. Take the time now to improve your credit score by paying bills on time and staying below your credit limit. Another thing that will help is managing your debt. Make a plan for tackling down some of your debt. The average score for Gen Z is 679 according to Experian. What’s your score?
You’re entering the workforce at a great time when it’s likely you’ll find work-from-home positions offering flexibility when it comes to where you live. Consider looking outside of your current area and researching living somewhere the houses are more affordable. Look at your potential budget and compare local townships. It’s a great idea to compare the overall cost of living in the area, too. Being flexible with your home “wants” will be key. You might also consider alternative types of homes like a tiny home or a fixer upper.
As a Gen Zer, you’ve grown up with the internet. You’re an avid researcher who’s Googled anything and everything. Probably even some things you’re too embarrassed to admit. It’s your first time buying a home, so you’ll obviously have tons of questions. Preparing some questions is a great start to your path to homeownership. You’ll learn and uncover things that can help you tremendously while preparing for this goal. For instance, did you know that shopping multiple lenders helps you get a better rate? As you plan for your future home, research and write down any questions you have.
There are so many resources out there to help you on your journey. You may immediately think of reaching out to real estate agents and mortgage lenders to learn more about buying a home. These sources are great and can help with some of the more technical aspects, but you may consider reaching out to friends and family, too. If you have friends or family that have purchased their first home recently, ask them for advice. You’ll learn some incredible insights and can find out how to avoid some of the mistakes they may have made.
How Soon Can Gen Z Become New Homeowners?
Everyone’s path to homeownership is different. You’ll find some are able to become new homeowners sooner due to their circumstances while others will take a bit more time. Maybe they have too much debt or haven’t begun saving (25.4% of Gen Zers don’t regularly save and the 74.6% who do aren’t intentionally saving for a house). The best thing you can do is understand where you are now and what you can do to work towards the goal of a home.
With the higher rates and higher home prices, it may seem like buying a home is out of reach for many Gen Zers. It’s uncertain how the housing market trends will go and that’s to be expected. However, many experts are optimistic about the future as long as Gen Z is educated and keeps a strong focus on homeownership as their goal.
Learning how to save for a house, boost your credit score, shop around, and learn from others will be a great help towards homeownership. It’s also important to remember that you have options to alleviate some of the potential challenges. Many millennials and Gen Zers have opted to move back in with their parents to save more money. There are also tons of programs and grants available to first time home buyers. You can potentially lean on family as well for co-signing or lending money for a down payment.
It’s certainly possible for Gen Zers to be future homeowners. Get ahead of the 20.8% of Gen Zers saying that not knowing where to begin will be the most challenging for them to purchase a home. Start by staying educated and focused on the things you can control to move towards homeownership.
New Tradition Homes is Here for New Homeowners!
New Tradition Homes has over 30 years of experience, so you can trust we’ve worked with many new homeowners. Our communities throughout Washington State are in great locations with ample opportunities for employment as well as low costs of living. You can also check out our Rise collection that’s specifically designed to make your dream of buying a home achievable. They’re delightfully priced with an express turnaround time to make the process straightforward and smooth as butter. When you’re ready, we’re happy to answer any questions you have about our process, floor plans, communities, and more. Connect with us online today to get started.
New Tradition Homes has been great to work with. They have a great product and they are very good about explaining the process and helping to pick design options. They have been very responsive to our requests and we feel very good that we purchased our home from them.