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Young home buyers are leaning on parents for help, real estate agents say

By agedleadstore
Young home buyers are leaning on parents for help, real estate agents say Feature Image
3 minute read

First-time home buyers are facing more obstacles than ever to purchase a home, so experts say they’re doing whatever it takes to make it work — including asking their parents for help.

According to Bloomberg, real estate agents say many first-time buyers are enlisting the help of their parents to purchase a home, including co-signing a mortgage, providing the down payment funds, or even full-out buying the property for them.

Bloomberg referenced real estate agents from across the country who have confirmed they’ve never seen so many parents helping their kids buy a home.

While parents helping their children out on a big purchase isn’t a new concept — particularly in wealthy families — experts say it’s become nearly essential as more and more first-time buyers have been priced out of the market.

Experts say this new phenomenon is likely more widespread because rental prices are on the rise, too, so clients are finding it more beneficial to invest in a home rather than spend so much on rent.

Additionally, many renters across the nation have been forced to move out after landlords increased their rent amounts by hundreds of dollars.

But what about the first-time buyers who don’t have the benefit of asking their parents for help?

While higher interest rates mean higher monthly payments and higher loan amounts to qualify for, experts say that current rates are still historically low.

In comparison to last year’s record low rates, this year’s rates seem high, experts say. But there are still opportunities for buyers, even if they have to stretch their search area to find a home within budget.

Financial experts recommend first-time buyers work closely with local real estate agents and mortgage lenders to determine what they can afford, and what types of local and state support are available to help them qualify.

Experts also place emphasis on shopping around for the best rates and options. Some lenders offer certain loan programs for first-time buyers, or can suggest assistance programs or available grants.

However, there is good news for first-time buyers: research shows home sales activity appears to be slowing, which can allow builders to catch up on inventory and bring more balance to the market.

If a first-time buyer decides it’s in their best interest to wait out this period, they still should be on the hunt for a reputable lender and get preapproved for a mortgage.

Experts say pre-approval helps borrowers understand what exactly they can afford, which can help them properly plan and budget for when the time comes to purchase their dream home.

Photo by Karolina Grabowska

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