Millennials are more tech-savvy than previous generations. They grew up with technology, have an innate knowledge of how consumer electronics work, and expect technology to make their lives more productive and enjoyable. Therefore, since millennials are the biggest purchasers of homes, the entire housing market is developing technology to deliver the experience this age group of homebuyers is seeking.
Technology Important to the Millennial Buying Process
Technology is a huge part of the buying process for millennials. According to Economists’ Outlook, “They are the most likely to find the home they purchased using the internet (56 percent), most likely to frequently use the internet in their search (93 percent), and most likely to use a mobile device to search for homes (86 percent).”
This is a problem, however, because they aren’t always finding the homes they want, possibly because Realtors and sellers aren’t adequately listing them in ways millennials can find them online.
Furthermore, millennials typically do more research online before making a purchase, using multiple online resources to find homes and review mortgage options, sometimes looking at the same property several times while using a variety of apps and websites.
Marimark Mortgage Leverages Technology
Marimark Mortgage was created from the beginning to deliver mortgages to customers while leveraging technology to inform homebuyers, and speeding up the mortgage process. That’s why we can go from taking an application to receiving a clear to close in just days, while other lenders take weeks.
Homebuyers can apply for a mortgage online with Marimark Mortgage, entering as few as four required items, or all their information. Then as the process proceeds, applicants are kept in the loop with auto generated emails that tell them the exact status of their mortgage.
Most importantly, as already mentioned above, Marimark Mortgage offers the one thing millennials expect more than anything – speed. We often close home loans in 30 days or less, and more quickly depending on the circumstances.
Homebuying Tips for Millennials
Though millennials are the largest homebuying demographic today, many in this age group struggle to qualify for a home mortgage. As a result, many millennials are waiting until they are older to purchase a home. Here are 4 homebuying tips for tech-savvy millennials.
Tip #1: 2017 Mortgage Changes Make It Easier to Qualify, So Consult a Mortgage Broker
Fannie Mae has made two significant changes that can help millennial homebuyers qualify for a mortgage. So, if you have not consulted a mortgage broker to see if you qualify for a mortgage since July 29, 2017, you should do so immediately.
All you need to do is call a mortgage broker, who will briefly review your finances over the phone, and you will learn whether you can qualify for a mortgage.
- It’s Easier for Homebuyers with Student Loans to Qualify for a Mortgage in 2017
- Fannie Mae Made It Easier to Qualify for a Mortgage July 29, 2017
Tip #2: Understand Your Credit Report
Understanding and cleaning up your credit report is critical when you are buying a home. Review your credit report, make sure it is accurate, and correct any mistakes.
Additional things you can do to improve your credit score are:
- Effectively use credit to build your credit rating.
- Limit applying for new credit.
- Keep balances low relative to credit limits.
- Don’t close old, unused credit accounts.
- Make sure bills are paid on time.
Tip #3: Understand Your Debt-to-Income Ratio Relating to Recent Changes
Fannie Mae raised the debt-to-income ratio ceiling from 45% to 50%, as of July 29, 2017. Furthermore, Fannie Mae changed the way student loans are calculated in the debt-to-income ratio. Both of these changes should allow many millennials who had difficulty qualifying for a mortgage to now qualify.
So, understanding your debt-to-income ratio in light of these changes is very important. Millennials who did not qualify for a mortgage just a few days ago may now qualify.
Tip #4 Understand Low Down Payment Options
There are several low down payment options for which many millennials qualify.
There are zero down payment options available to veterans and people getting a USDA mortgage. There are 1% down payment conventional mortgages because the lender contributes 2% toward the down payment. And there are FHA mortgages with a 3.5% down payment.
The easiest way to see which low down payment options may be available to you is to call or visit your mortgage broker, who can explain each option.
Related: 5 Mortgage Tips for Millennials
Marimark Mortgage is based in Tampa, Florida, and serves the mortgage needs of homebuyers and homeowners in Florida, Virginia, and Pennsylvania.
We specialize in conventional home mortgages, FHA, VA and USDA mortgage options, refinance loans, and reverse mortgages. We’ve worked extensively with cash-out refinancing, and help clients with HARP refinancing to lower their monthly mortgage payments.