Home Buying for Millennials

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I’m Sean Reynolds from Summit Properties Northwest and Reynolds & Kline Appraisal and this is kind of a quick video on the subject of first time home buyers and more specifically millennial, first time home buyers. It could be for anybody, but um, my kids are in the age demographic of, my oldest will be 25 and my youngest will be 22. A lot of our summit brokers are millennials looking at buying homes for the first time, and so as a result, their clients are also millennials. So this is kind of a rough idea of looking at the home buying purchase process and what you need to do, kind of what position you need to put yourself in to, in order to buy a home. And I totally get the fact that a lot of millennials are like, you know what, I’m just going to rent forever, buying a home that’s overwhelming, way too much responsibility. You’ve got to have a job forever. You know, I’m going to be really old when I pay that thing off in 30 years. Totally get all those things.

But, at some point in time in your life, you may want to actually buy a home and these are the things that, um, are going to be important in that home buying process. So here we go. So the first thing you’re going to want to do is you’re gonna want to talk to somebody that can get you a mortgage and that might be a, a, a loan officer at a credit union. It might be a mortgage broker, it might be somebody who works for a bank, but somebody that can look through your employment history, see that you see how much money you make and determine how much you qualify for a mortgage.

And so you need to get a hold of somebody who can get you a pre-qualification letter, who can qualify you for a mortgage. How do you do that? Either you ask your parents for a recommendation. They may have a professional that they’ve worked with. Ask your friends if you trust your friends, you can email me. I’ve been in the industry forever. I’ve got a ton of people, a ton of good people that I work with. I can point you in the right direction of somebody I think would be a good fit for you after talking with you. Basically go on a recommendation of somebody who’s already experienced services with that person. They’ve gotten a mortgage, somebody they know has gotten a mortgage, but just have an idea of, yeah, this person’s going to be ok, they’re going to work. Um, and what that person is going to be looking at, the mortgage person is going to be looking at is your employment history.

Um, have you been in the same industry? Have you had the same job consistently long enough to make a mortgage payment? Do you have enough money for the down payment, and then also reserves in case something goes wrong. Say you lose your job, you’ve got enough money to pay that mortgage for a little bit. So employment history, enough cash to make it go, and then they’re going to want to talk to you about your credit. What does your credit score look like, because that is what the lenders look at to see if you are credit worthy of this big massive mortgage. Do you have the credit history to be able to repay this thing back over whatever term it is? It’s typically like 30 years, so those are the things that the mortgage person is going to be looking at asking you. Kind of know those are big topics and in the back of your head have those as things that you’ll be working on even if you’re not ready to buy a home now and you don’t think you want to buy a home right now, but maybe in the future, that’s an option. Those are things that you’re going to want to be thinking about.

So you’ve gone to the mortgage person, you’ve gotten qualified for a loan, you’ve got your pre-qualification letter. Next thing I would do is probably reach out to a real estate broker and that’s somebody that you, again, hopefully get as a referral, not somebody that you find randomly that you have no professional connection with. Get a referral from somebody you know. Summit Properties Northwest has a ton of great brokers and specifically millennial brokers who use a lot of technology in helping you find a home, helping you make sure that it’s at a price that you can afford and that it’s a price that’s reasonable for your budget. So you’ve gotten prequalified for a mortgage. You found a real estate broker that you want to work with. The next step, and this is where most people get it wrong, is you go out and look for a home.

Most people find the home and then scramble around, ah who can we get to get a mortgage from or what real estate broker can we use? Do you know somebody? That’s usually how it goes, but do the other steps first. Find your mortgage guy, get pre-qualified, find your broker, get things lined up, figure out what you can afford, and then start looking for homes, because then this will kind of all fall into place. And another big thing that I really recommend a lot of the markets around here, in order to get a home, you’re going to have to go into a bidding war and it sounds terrible, but it’s really just a pretty basic process. You are competing with a number of other people in order to get that home, so you might start off like we’ll call it 200 grand. That home may get escalated up to like $250,000 and so you’re in an escalation war with somebody else. So when you are looking at your budget and you’ve got a pre-qualification letter that says up to this amount.

Typically what I recommend is start lower so that if you start down here, then you can end up where the cap is on your budget. So don’t start looking right at the very top end of your budget because then if it escalates above, you’re not going to get the house and it’s kind of a waste of time. So know where your limits are, know the real estate market that you’re entering into. Check out some blogs out there. There’s a ton of them. Just do a quick google search for Seattle real estate or whatever real estate market you’re in. Um, there’s a lot of information that you can pick up and the more knowledgeable that you make yourself, the more intelligent a home buyer and the better home buying decision that you’ll make. And I’m also always typically available via email or text. I’ll put my information, my cell phone at the end of this video, have that information.

If you want to hit me up as a resource, I am more than happy to. I get questions from my kids and their friends all the time. It’s like, Hey, this is what I’m thinking about doing. What do you think?

I’m Sean Reynolds from Summit Properties Northwest and Reynolds & Kline Appraisal. I appreciate you watching this video. I’d love to have you subscribe to the channel. So hit the subscribe button, or leave me comments, questions or ideas for other videos. I create videos all the time on real estate and real estate related topics. Again, thanks for watching the video, bye.

Sean Reynolds

Sean Reynolds

The Owner and Designated Managing Broker of Summit Properties NW and Reynolds & Kline Appraisal.

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