Is Now the Time for Millenials in the DFW real estate market?

As a fellow millenial here, it has taken time to get others in my age range excited about homeownership. We know it should or could be stuff that we can do yet we feel so bottled down with debt that it isn’t looked at as an option. I am here to break it to you. We can, YES WE CAN, become homeowners. If you can pay rent, you can purchase a home.  We can have the granite countertops, hardwood floors (that’s truly laminate in your apartment…trust me), plush carpet, white cabinets, and Joanna’s shiplap in our home. We tend to think that student loans stop us from purchasing a home OR that credit cards prevent us too. If you have decent credit, say a 620 or higher, you have options in these streets. Conventional loan programs such as Fannie Mae and Freddie Mac has loosening guidelines to help those with student loans become homeowners.

As the Queen of Resources, I’m here to tell you that there are ways to get into a home and the market is becoming more friendly to first time buyers especially those who have felt like the market didn’t favor them.

For the past two years, it seems as if the prices have doubled making homeownership out of reach. I am here to let you know today that the stars are starting to align. Buyers now have options in today’s market. This is finally your chance to get into the market and get the home you love.

Builders are starting to take notice too as they have since left the starter home phase and went straight to move-up homes which start in the mid-300s. They are now creating divisions within their brand that caters to millenials and first time homebuyers. You will see brand new homes now starting in the high 100s or low $200s.

 

WHAT CAN I AFFORD BASED ON MY RENT?

The next thing that has most people my age on the fence of homeownership is should they rent or buy? How does that payment change from my rental payment? Let’s look at it like this:

Rent: 2 Bedrooom, 2 Bathroom = $1500/month

Home Purchase: 3 Bedroom, 2 Bathroom = $192,307 ~ $1500 mortgage payment

That’s an extra bedroom, more space in the home, as well as a backyard for the price of your rent.

Winn Ridge currently has floorplans with the price of the home at $194,000. With home prices, every $1000 is only $5-7. That means that a home at $194K is approximately $1510. This calculation is based on putting the minimum down on a home (3-5% of sales price). For $1600/month for a mortgage payment, we can estimate a home at $205,000.

THAT’S GREAT AND ALL BUT WHO HAS DOWN PAYMENT MONEY?

I tell my clients that if down payment is their struggle then we can find them money for their home.  HELLO!!!! Queen of Resources here and where there is a will there is most definitely a way. Plus, I have 9 Ways to Fund a Down Payment laid out for you already. There are lenders who have 1% down programs on a conventional loan. There are USDA programs which is 100% financing meaning NO down payments. Disclaimer: USDA loans can only be used to purchase a home in a rural area. However, the pace of growth in DFW opens a LOT of cities/towns for USDA. Ever heard of Little Elm or Prosper? Did you serve our country? Thank you for your service and here’s the BEST loan product out there for doing so called the VA Loan. The VA loan is similar to USDA which is 100% financing = $0 down payment.

Buyers with particular professions can also qualify for loan programs by lenders that may waive lender fees or give them down payment assistance funds to get them in the home. Basically, if you want a home and are willing and able to get one, the SUPPLY is available. The time is NOW.

 

Looking for Your Dream Home? Know What You Need vs What You Want

In this day and age of being able to shop for anything anywhere, it is really important to know what you’re looking for when you start your home search.

If you’ve been thinking about buying a home of your own for some time now, you’ve probably come up with a list of things that you’d LOVE to have in your new home. Many new homebuyers fantasize about the amenities that they see on television or Pinterest, and start looking at the countless homes listed for sale through rose-colored glasses.

Do you really need that farmhouse sink in the kitchen to be happy with your home choice? Would a two-car garage be a convenience or a necessity? Could the ‘man cave’ of your dreams be a future renovation project instead of a make-or-break right now?

The first step in your home buying process should be getting pre-approved for your mortgage. This allows you to know your budget before you fall in love with a home that is way outside of it.

The next step is to list all the features of a home that you would like, and to qualify them as follows:

  • ‘Must-Haves’ – if this property does not have these items, then it shouldn’t even be considered (ex: distance from work or family, number of bedrooms/bathrooms).
  • ‘Should-Haves’ – if the property hits all of the ‘must-haves’ and some of the ‘should-haves,’ it stays in contention but does not need to have all of these features.
  • ‘Absolute-Wish List’ – if we find a property in our budget that has all of the ‘must-haves,’ most of the ‘should-haves,’ and ANY of these, it’s the winner!

Bottom Line

Having this list fleshed out before starting your search will save you time and frustration, while also letting your agent know what features are most important to you before starting to show you houses in your desired area.

How Your Home’s Value Grows Your Family’s Wealth


Over the next five years, home prices are expected to appreciate 3.64% per year on average and to grow by 18.4% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey.

So, what does this mean for homeowners and their equity position?

As an example, let’s assume a young couple purchased and closed on a $250,000 home in January. If we look at only the projected increase in the price of that home, how much equity will they earn over the next 5 years?

How Your Home’s Value Grows Your Family’s Wealth | Keeping Current Matters

Since the experts predict that home prices will increase by 5.0% this year alone, the young homeowners will have gained $12,500 in equity in just one year.

Over a five-year period, their equity will increase by nearly $49,000! This figure does not even take into account their monthly principal mortgage payments. In many cases, home equity is one of the largest portions of a family’s overall net worth.

Bottom Line

Not only is homeownership something to be proud of, but it also offers you and your family the ability to build equity you can borrow against in the future. If you are ready and willing to buy, find out if you are able to today!