For first-time buyers looking to become homeowners this year, experts say do your homework: determine your budget, prioritize your requirements and get pre-approved for a loan.
“Be first in line,” advised Vivas. “Start your search early, figure out your budget early on.”
Millennials are also facing a tighter lending environment compared to a decade ago as banks stiffen up on credit requirements.
But despite the obstacles they face, Millennial buyers do have a major advantage: low interest rates.
“If you compare their access to credit and ability to get into a home, it’s far easier for Millennials than previous generations,” noted Joe Tyrrell, executive vice president of Ellie Mae. “Back when Millennials’ parents were buying homes, they had higher interest rates and there weren’t down payment assistance programs.”