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Why More People Are Struggling to Buy a Home

Homeowners moving into their new home

For many aspiring homeowners, spring is the perfect time to get a house. The properties are at their lowest, which works to your advantage, especially if you’re looking for one that meets your requirements and that of any mortgage company, whether it’s in Utah or California. However, looking for a property that’ll fit your budget is not as easy as it used to be.

For most Millennials, it’s a struggle to own a home. Apart from the fluctuating prices in the housing market, they also have a massive amount of student loan they need to pay for. There are even some who had to work full-time throughout college, so they can support themselves and pay for their tuition fees.

At least 43 million Americans have an existing student loan. As college costs keep rising, their dreams of having their own home may very well exist only when they’re asleep.

Their existing student debt prevents them to live their lives comfortably. They can barely afford to get the things that they need, and it’s even tough for them to change careers. Even those who are a part of the previous generations find it difficult to get their dream home. Most had to compromise many things so they can get a property that’s within their price range.

Aspiring homeowners looking at the bright side

Even though house market prices continue to soar, there’s still a glimmer of hope for many homebuyers. According to studies, people are more open to negotiations than ever, which is a possibility that buyers should think about when buying a home.

That’s why experts suggest searching for properties that are slightly higher than your price range. You should also consider negotiating for concessions by asking if sellers can shoulder the home repairs or even the closing costs.

Fewer homes are currently available in the market compared to the previous years. Experts say that the decrease in the ads may be a result of a drop in new home constructions after the recession. Although sellers are open to the idea of negotiating their prices, the lack of availability of houses can lead to bidding wars. It can be discouraging for those who haven’t done it before. That’s why it’s best to focus on your savings as much as you can. If you can get your mortgage fully approved, then you’ll feel much more confident in making an offer.

Secure a loan from a mortgage company

Securing house loan documents

Financing is still one of the biggest hurdles that many first-time buyers must face. The Federal Housing Administration (FHA) says that it has plans for toughening the rules surrounding high-risk mortgages. The body that ensures government-backed loans have grown weary about the decrease in the average credit scores of borrowers.

It could be difficult for a few aspiring homebuyers to get a loan. Although it can be challenging, there is still a way to do it. Homebuyers can build up their credit score before they apply for a mortgage. Doing so can help increase their chances of securing a mortgage and even getting it at a lower rate.

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