The Spring 2016 Buying Season is here! Millennial Home Buyers are starting to stray from renting. Instead, they are searching for their first home. There are some specific requirements that this generation wants that may be different from previous generations. To sell a home to a Millennial, here’s what they consider home “must haves.”
A Good Location
Younger homebuyers without children tend to see a good location as one that is near public transportation and/or has a good walking score. This is different from their parents that likely didn’t mind a longer commute with more privacy. Young homebuyers that plan to have children may also want something that’s a little more residential but still close to the amenities they enjoyed as single persons.
Today, most people start their search for a home online. Making sure that the home has professional looking photos is key to capturing the interest of millennial homebuyers. Factors such as lighting, angle, and general cleanliness are all important for a photo to come out looking its best.
Open Floor Plans
Many young homebuyers don’t feel the need for a formal dining room. During festive occasions, most people are now spending their time in the kitchen and the common living room. There is a desire to have more of a flow when they are entertaining instead of having rooms sectioned off for specific purposes.
Updated Kitchen and Bathrooms
As mentioned before, the younger generation entertains more in the kitchen, which requires a nice big space. In addition, kitchen and bathrooms are often very expensive to renovate and change. Millennials often have limited budgets and spend their money on a down payment and furnishings instead of updating.
Making a home as low maintenance as possible is excellent for millennial homebuyers. Wood floors and granite countertops are a plus since they’re much easier to clean than carpet and easily stained surfaces.
“When You Work With a Professional, You Get Professional Results”
Mortgage Underwriting is the process of verifying information about your employment, income, assets, debts, and credit history to determine if you can afford to pay back the mortgage loan you are applying for.
Mortgage Underwriters also verify that the size of the mortgage you’re applying for is reasonable compared to the value of the property you’re buying or refinancing.
Sound underwriting helps ensure that you qualify for a mortgage loan that you can afford to repay and it gives lenders the confidence to make mortgage money available to people who want to buy or refinance a home.
The Mortgage Underwriting process is basically divided into three parts:
1: Gathering and Verifying Your Information
Your lender, or your lender’s loan officer, collects and verifies your personal information, from your employment history to your outstanding debts.
You’ll be asked to give your lender permission to independently verify your information and obtain copies of your credit history.
Here’s a short list of the information you will need to begin underwriting your mortgage.
♦ Employment: You’ll be asked to document your current employment status and provide your job history, including the length and terms of employment.
♦ Income and Assets: Income is used to calculate the size of the mortgage you can responsibly afford and the size of the down payment you’ll need. Expect to provide proof of your primary income, such as copies of your W-2. You’ll also be asked to document other income sources and assets the underwriter may be able to use to evaluate your mortgage eligibility. Assets can include anything from bank accounts, retirement funds, investments and rental property, to your car.
♦ Debts: A list of your current debts – such as credit cards, auto loans, student loans – is needed to calculate your debt-to-income ratio. Underwriters use this ratio to determine if your available income will enable you to continue paying your outstanding debts and a new mortgage payment.
♦ Credit Report: Your credit report from independent credit bureaus(Experian, Equifax, and TransUnion) includes a record of your previous credit transactions … aka your credit history: plus a credit score based on proprietary formulas developed by the respective bureaus This information is used to help determine your creditworthiness and the likelihood that you’ll repay your mortgage.