Millennials in Florida, individuals who were born between 1981 and 2001, may list affordability as one of the main issues that determine whether they may own a home.
Just 39 percent of millennials can afford the 20 percent down payment that is often necessary to obtain a mortgage. Even though there are other ways to obtain a mortgage that may not require a substantial down payment, it is important that millennials know exactly how big of a house they can afford before starting the home-buying process.
Student loans are another factor that can affect homeownership. The average student loan debt is $35,000. Eighty-three percent of individuals who do not own a home state that their student loan debt is preventing them from buying a house. It affects how much they are able to put away for a down payment and how much they can afford to pay each month for the mortgage. Student loans also raise a person’s debt-to-income ratio, which has a significant role in whether he or she can qualify for a mortgage.
Millennials with student loans should speak with a lender to learn about their options. Student loans can affect their debt-to-income ratio in a variety of ways. Those with a meager credit history and a high debt-to-income ratio may find it useful to take time to improve their credit score and lower their debt-to-income ratio by paying off or significantly reducing their student loan balance.
The Law Office of Ryan S. Shipp, PLLC recommends that individuals seeking to purchase or sell residential real estate should contact experienced West Palm Beach Real Estate Attorneys that practices real estate law. West Palm Beach Real Estate Lawyers may work to protect the interests and rights of their clients during real estate contract negotiations or closings. Litigation may be used to resolved disputes regarding title, escrow deposit, land development, lack of disclosure, breach of real estate contracts and more. Call us today @ 561.699.0399 to see how we can help.