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February 06, 2018
Millennials Seek Home Ownership

One in seven millennials plan to purchase or refinance a home in next 12 months

More than 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 Pulse™ 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 Stats:
 
  • 71% of Nebraska and North Dakota millennial home buyers spend or anticipate spending between $100,000-$299,999 on a house
  • One in five (20%) millennials in Nebraska and North Dakota have not checked their credit score in the past six months
  • Low interest rates (77%), low monthly payments (45%), and down payments (38%) are the top three factors cited by Nebraska and North Dakota millennials when choosing a home loan lender



The majority of millennial buyers in Nebraska and North Dakota (91%) 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

1. 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.

2. 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.

3. Ask about Preapproval. Pre-qualification is not the same as preapproval. 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 preapproval process with multiple lenders. You’ll see which is the most willing to find the right loan, rate and terms for you.

AAA now offers competitive rates on a wide variety of home loans, from conventional home loans to Federal Housing Administration (FHA) and Veterans Administration (VA) loans, when you bank through AAA. AAA members can call 844-222-2475 to speak with an AAA home loan professional.

Contact(s):

Gene LaDoucer
phone: 701.893.3759
About the Survey
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 485 Nebraska and North Dakota millennials completing the survey. Total results have a maximum margin of error of ± 2.3 percentage points. Nebraska and North Dakota results have a maximum margin of error of ± 6.3 percentage points. Responses are weighted by gender and age within state to ensure reliable and accurate representation of the adult population (18+).

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.

 


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