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.
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.