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Finances get in the way of homebuying activity

Posted on Thursday, June 5, 2014 at 9:45:02 AM

Buying a home is the goal of many people across the country, especially millennials interested in starting a family and settling down. However, personal finances are getting in the way of this process, and that has caused some people to look for other ways to purchase real estate.

According to a recent Trulia survey, roughly 50 percent of all millennials intend to ask their parents for help with the down payment. In addition, 37 percent want to find a second job, while only 22 percent will turn to state and federal assistance programs.

"Saving up for a down payment is a big obstacle and it can make the homebuying process even more intimidating," said Trulia real estate expert Michael Corbett. "Millennial homebuyers need to know that if they are going to turn to bank of mom and dad for a down payment they should treat it like a loan. Write up a contract and determine what is best for monthly payments."

Moreover, a separate Trulia article recommended finding other ways to cut back and save money for residential financing payments. For example, potential homebuyers can reduce monthly purchases such as expensive coffees or other leisure activities. It can also be helpful to work with a bank to use automatic savings and other features to put more money into a personal account.