The Surprising Number of Mortgage-Ready Millennials Right Now
Some say housing may be about to come in for a soft landing — which is fine for almost everyone involved. For buyers, sellers, real estate and mortgage professionals, anything is preferable to a crash.
Price flattening won’t do much to inspire builders to help with what will likely continue to be a shortage of housing inventory for those looking to become first-time homeowners. But according to the Urban Institute’s recent report, “Barriers to Accessing Homeownership,” there are apparently 21 million “mortgage-ready” millennials in 31 metropolitan areas across the country. Mortgage-ready millennials are identified as “non-mortgage holders ages 40 and younger who have credit profiles strong enough to qualify for a mortgage.” That is a lot of people who should at least be considering buying that first home.
Defining those individuals as mortgage-ready, however, doesn’t mean reaching, enticing, and getting them to pull the trigger on homeownership will be easy. It might actually be a little difficult, as renting is still a very practical, more affordable option to owning in many of those cities and the surrounding suburbia. And that suburbia option doesn’t seem to play to those younger generations like it used to, as it might not provide the lifestyle those potential homeowners are currently enjoying. That is tough to overcome — even where the suburbs might be more affordable.
Then you need to consider, what is mortgage-ready? Sure, they may have the income and credit to qualify — but do they know it?
At Embrace we have uniquely positioned ourselves with the right products and tools to ensure each of your clients, even those that are self-employed, have the help they need to make great decisions about entering the home buying market. Even if they are in no great rush, we are more than willing to talk to them about their options, help them identify potential issues in qualifying, and work with them for as long as they may need.