The majority of millennials are not putting major milestones ahead of buying a home.
According to a LendEDU survey of more than 1,000 millennials, marriage, children, owning a pet and a new career were not delaying most millennials from buying a home. So what is delaying the 89% of non-homeowners who want to make that purchase?
Not surprisingly, finances. Twenty-six percent of respondents said a lack of savings is delaying them from buying a property, while 24% said low income. Fifteen percent attributed the delay to either overwhelming student loan debt or credit card debt. Only 8% said they have yet to find the right home. Yet, despite their memory of the Great Recession, 67% said it has not impacted their opinion about homeownership. Most millennial non-homeowners expect to become homeowners within the next five years, while an additional 21% said in the next six to 10 years.
However, more than half reported that insufficient knowledge of mortgages and homeownership is delaying their homeownership goals. The average response among millennials for the minimum down payment required for a home was 37% and the average millennial respondent said they think the entire mortgage process takes 72 days. According to the average reply of respondents, $58,818 is the minimum annual income they believe is needed to take out a mortgage.
Three-quarters of respondents in the survey said they do plan to use a mortgage and 78% plan to search for multiple quotes before signing. Even though millennials have the reputation for all technology all the time, 52% said they would prefer to handle the majority of the process in-person, while only 22% preferred to take care of it online.