Over half of millennials have either bought or refinanced a home in the past two years, or plan to purchase or refinance a home in the next two years, according to a recent AAA Consumer PulseTM survey. Click here for complete survey results.
Millennials site renting fatigue (45%), seeking a better neighborhood (37%), and wanting to start a family (25%) as the top reasons for house hunting.
Quick Consumer Stats:
61% of Florida millennial home buyers spend or anticipate spending between $100,000-$299,999 on a house
Nearly one in four (24%) millennials in Florida have not checked their credit score in the past six months
Low-interest rates (54%), low monthly payments (43%), and down payments (35%) are the top three factors cited by Florida millennials when choosing a home loan lender
The majority of millennial buyers in Florida (71%) seek financing when purchasing a home, but many first-time home buyers are unsure where to start when it comes to a home mortgage.
“Knowing the right questions to ask when applying for your first home mortgage is critical,” said Dan Reed, Vice President Lending, AAA – The Auto Club Group. “Finding a trusted mortgage lender who will not only find the best loan for you but thoroughly explain the terms of the loan options available is a step in the right direction.”
AAA Banking Tips for Choosing a Mortgage Lender
Start Early. The real estate market heats up in the spring, so now is the time to start researching mortgage lenders and loan programs. The earlier you find a lender, the more time you’ll have to establish a relationship with your loan officer. That is important because having someone you feel comfortable turning to for advice will give you peace of mind.
Look Past Low Rates. Low-interest rates are important but ask about additional costs−like application fees, title insurance fees or attorneys’ fees−since those charges can vary. Also, be sure the lender provides a wide range of loan programs. The loan that works best for you might be a type of mortgage or government program that not every lender offers.
Ask about Preapproval. Pre-qualification is not the same as pre-approval. A mortgage preapproval letter shows the seller that the bank has evaluated your finances and is willing to loan you the money−putting you at a major advantage when you make an offer. Consider going through the pre-approval process with multiple lenders. You’ll see which is the most willing to find the right loan, rate, and terms for you.
About The Auto Club Group
The Auto Club Group (ACG) is the second largest AAA club in North America. ACG and its affiliates provide membership, insurance, financial services and travel offerings to over 9.4 million members across eleven states and two U.S. territories including Florida, Georgia, Iowa, Michigan, Nebraska, North Dakota, Tennessee, Wisconsin, Puerto Rico and the U.S. Virgin Islands; most of Illinois and Minnesota; and a portion of Indiana. ACG belongs to the national AAA federation with more than 58 million members in the United States and Canada and whose mission includes protecting and advancing freedom of mobility and improving traffic safety. Motorists can map a route, identify gas prices, find discounts, book a hotel, and access AAA roadside assistance with the AAA Mobile app for iPhone, iPad, and Android. Learn more at AAA.com/mobile. AAA clubs can be visited on the Internet at AAA.com.
About the AAA Consumer Pulse™ Survey
The AAA Consumer Pulse™ survey was conducted online among residents living in The Auto Club Group territory from October 10, 2017 – October 30, 2017. A total of 3,569 millennials completed the survey, with 409 Florida millennials completing the survey. Total results have a maximum margin of error of ± 2.3 percentage points. Florida results have a maximum margin of error of ± 6.9 percentage points. Responses are weighted by gender and age within the state to ensure reliable and accurate representation of the adult population (18+).