First-time homebuyers are ready and able to buy homes, but worry about what happens when instability hits.
That’s according to a new survey from Raleigh Realty, which sought to find out what first-timers are concerned about and the challenges they face.
Most younger buyers (25%) are millennials. Gen Z only made up 4% of first-time homebuyers.
39% of millennial buyers made between $75,000 and $150,000 a year. That statistic goes up to 51% for buyers who are Gen Z.
Many buyers are purchasing homes without outside help from family or friends. This defies stereotypes of “nepo” buyers floated in the last few years, according to the survey.
Notably, buyers fear change and the possibility of economic instability. Nearly 60% are worried they won’t be able to afford monthly mortgage payments if they lose their jobs.
Still, they cited affordability as their main stressor during the homebuying process, followed by mortgage approval, property taxes, down payment amount, and maintenance costs.
The survey reveals opportunities for lenders to educate buyers about their products.
More than half of buyers (56%) didn’t start the mortgage application process until after they started their home search. When they finally did, half only applied to one lender, while 34% submitted to two.
40% chose their lender based on rates, followed by recommendations from family and real estate pros (12% and 15%, respectively).
