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

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       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!

1 comment:

  1. As part of Generation Z, I am already worried about buying a home as I watch the generation before me struggle. I can only imagine how difficult it is going to be by the time I try if things continue how they are now.


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