Skip to main content

Tackling Millennial Student-Loan Debt: Getting on Track to Buy a Home in Chicagoland

Tackling Millennial Student-Loan Debt:  
Getting on Track to 
Buy a Home in Chicagoland  

     Being the father of two Millennial-age sons, I can tell you from personal experience ... this age group is facing some serious financial issues.  

     One such issue is student-loan debt ...  

     It's much higher than my generation's was.  And student-loan debt is currently slowing, stalling, or keeping the younger generation out of the housing market.

     Luckily, one of my sons dodged this economic bullet.  College costs were limited and minimal because he received a college scholarship.  

     My other son did much the same while attaining his Bachelor's Degree.  But he decided to pursue further education and attended law school.  In New York.  Ouch!  

     He's made steady headway on repayment of his student loans, but the debt still takes a toll.  And to this point, it has kept him from buying a home.  

     Statistics prove he's not alone.  A report released by the Federal Reserve Bank of New York in April of 2013, showed that the homeownership rate of 30-year-old Home Buyers that also had student loan debt had decreased by over 10%.  That bucks historic trends that show those with more education have proven to be more active in the home buying market. 

     No matter how you slice it ... it's sad.  Especially when considering tandem statistics regarding the level of economic activity that could be stimulated by that Millennial demographic.  In just one area of the economy alone, that of home building, it's estimated by the National Association of Home Builders that: 

     If First-time Home Buyers purchased 143,000 newly-constructed homes, it would create 86,000 new jobs.  

     Think about it.  All the jobs created by these purchases include:  

  • Home repair 
  • Real estate commissions 
  • Home staging 
  • Home insurance 
  • Furniture and appliance sales 
  • Construction material sales 
  • Mortgage lending 
  • Landscaping design and application 
  • Many more

     While a political debate rages over the handling of this issue, the problem remains as one that is real and affecting potential Millennial Home Buyers now.  

     So how do we in the Mortgage and Real Estate Industry help Millennial's tackle this problem?  How do we help potential and hopeful Millennials find solutions and become actual Home Buyers today ... and in the future?

     I believe the answer lies in Education, Conversation, and continuing Communication.  Education and opportunities to converse with Millennials about options that directly apply to them are invaluable.  

     Hopeful Millennial Buyers need to seek and talk to a Mortgage Originator (or an Agent) long before they hope to Buy a Home.  Then they must keep that communication going and pro-actively position themselves to buy a home.

     A Mortgage Originator can offer Millennials burdened with student debt concrete advice and direction as to how to pay down their debt(s).  This will help their debt-to-income ratios (an area of major concern when seeking Mortgage financing) immensely.  

     An Originator can also guide Millennials towards higher credit scores and position them for their future home purchase faster and more successfully.

     A Mortgage Originator can also educate about financing
options that will help Millennials achieve home ownership sooner than those that do not seek guidance and assistance.  One option that might be raised is that of Gift Money.  

     As a potential young Home Buyer, do you have someone willing to gift you money to advance a home purchase?  

     I can advise and direct those gift monies so they can serve you the highest purpose, whether that be towards the Down Payment for the home purchase itself or paying down of other debt.  (Depending on your financial scenario, one course of action may be more advantageous than the other.)

     Another option that could be considered is that of obtaining a Co-Signer.  I have written on this topic previously, but knowing the pros and cons of Co-Signing is important for both the recipient of the assistance and the Co-Signer themselves.  Again, gaining insight and education on this option well ahead of your considered home purchase is very important. 

     Millennials hoping to buy soon ... or at some point in the future, need to take advantage of the valuable credit info, financial advice, and guidance that is available to them. Being educated as to what will be expected of you regarding Credit Scores, from you as a Borrower, as well as the financial documentation required during Mortgage Application, is greatly beneficial too.  You can better prepare yourself and be organized as you work towards your Home Buying goal.  

     As a Mortgage Originator, I offer free consultations ... and opportunity to ask financing and credit questions ... for those hoping to buy currently, but also for those hoping to buy down the road.  This advice proves invaluable in getting you (and other hopeful Home Buyers) on the right track towards a successful home purchase.  

     Tackling Millennial Student-Loan Debt: Getting on Track to Buy a Home in Chicagoland.  Start the conversation.  Ask questions.  

     Don't hesitate or waste valuable time.  Contact Me.  The assistance and education you'll gain will prove beneficial to you in a myriad of ways. 

     Are your a Millennial-age hopeful Home Buyer in Chicagoland - IL - WI?  Contact Me today!  I'll be happy to discuss all your financial options and help you better position yourself to Buy a Home, whether it's now or in the future.
     I'm easily found at:

Gene Mundt

Mortgage Originator  -  NMLS #216987  -  IL Lic. #031.0006220  -  WI License #216987

American Portfolio Mortgage Corp.
NMLS #175656

Direct:  815.524.2280
Cell/Text:  708.921.6331
eFax:  815.524.2281

  Twitter Account of Gene Mundt, Mortgage Lender   LinkedIn Account of Gene Mundt, Mortgage Lender   Facebook Acct. of Gene Mundt, Mortgage Lender   Pinterest Acct. of Gene Mundt, Mortgage Lender   
   Trulia Acct. of Gene Mundt, Mortgage Lender     Gene's Chicagoland Blog/Gene Mundt, Mortgage Lender    
       Gene Mundt, Mortgage Originator, an Originator with 40+ years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  
Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans 
in Chicago and the greater Chicagoland region, including:  
The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL & WI

Your referrals are always appreciated!


Popular posts from this blog

Property Addresses: Gettin' Down to the Nitty Gritty

Property Addresses:   Gettin' Down to the Nitty Gritty

Take just a second and read through the following statements ...

“The devil is in the details” 
... "in life, it is often the tiny details that end up 
being the most important"

"Get Down To The Nitty Gritty"

“Little details have special talents in 
creating big problems!” 

“Sweat the details”

"Success is the sum of details"

Details ...Details ... it's all about the details ...
     And I'll admit it, I'm a bit of a nerd about them.  My whole family is.  Details, the intricacies, the little things ... they matter to us.
When I was growing up, a typical conversation (and argument) between my brothers and myself at the dinner table or in the backyard centered around "details".  It didn't matter what the topic was, it was the minor differences ... the details about the topic ... that we argued about.  I'm sure we drove our parents crazy.  
Sports statistics and games ... minutiae rega…

Ready for Fall? It's Arriving Soon

Ready for Fall?  It's Arriving Soon

Friend ...

Maybe it's because football season has started. Maybe it's the kids being back in school. Or because the night air is cooler. But a sense of Fall has arrived here in Chicagoland ...

The Fall Season brings changes with it. Changes in temperatures. Changes to the clothing we wear. Our focus seems to shift with the coming of shorter days, falling leaves, and crisp air.

Fall can be the perfect time to do a multitude of things. You can prep your home for the upcoming winter weather ... or for Fall listing and sale. 

But whether you're moving on or staying put, Fall is a great time to declutter and organize your home inside and out ... and your finances too.

I've googled like crazy to find interesting articles filled with Fall info, ideas, tips, and photos. Articles that will help you usher the Fall Season in at your house. I hope you enjoy reading the articles offered below and that they inspire you to make any needed changes.


Paper or Paperless billing? Which serves YOUR needs best?

Paper or Paperless billing?  Which serves YOUR needs best?

These days, companies are under pressure to go "green" and become more environmentally friendly.  As a result, an increasing number of businesses are offering their customers a paperless option with which to receive and pay their bills. 

There are obviously many positives to be found within these paperless services:

Trees are saved  Reduced postage costs  Less paper documentation to organize or save/storePossible rewards for switching to paperlessPayments can often be made/posted same-dayAutomated payments can be set-upMore
But I can tell you from my vantage point as a Chicagoland/IL/WI Mortgage Originator, there are also negatives to be found within paperless methods.  For some of my mortgage clients, the choice of going "paperless" just hasn't worked well.

 For some, an email or text reminder regarding payment of bills has not been enough. They NEED a paper billing to arrive in their mail. 

Their paper bil…