Gen-Z Buyers – Home Buyer Readiness Program

As we all know, this rate environment has created challenges for many buyers. However, there is a pool of potential buyers who are committed to purchasing – Gen-Zers.

According to a recent Rocket Mortgage® survey*, 71.5% of Gen-Zers (ages 20 – 26) plan to buy within six years and, of those, half plan to buy in one to three years.

A Home Buyer Readiness Program, and the right mortgage lender, can help your buyer determine what they can afford, timeline, and help them develop a specific action plan to achieve their goal of homeownership.

Your lending partner will address their fears, assess their home buying readiness, and uncover misconceptions about home buying.

Credit and Debt-to-Income
According to Realtor® Magazine 2020/2021 survey, 31.60% of First Time Home Buyers (FTHB) are “nervous to take a hard look at my finances”.

Answer: a credit report review with a spending assessment will give our Gen-Z home buyers a clear picture of where they are now. A compassionate and “non-selling” approach creates a safe environment to overcome their fears.

According to the same article, over a third of first-time home buyers are afraid they will not be able to afford their mortgage. This is a real concern for long-term homeownership sustainability and your return buyer pool. 

Answer: with rising rents, homeownership is comparably more affordable, not less. Using their current rent as a starting place often helps overcome this concern.  

Down Payment
Because rents are so high, many buyers don’t have much savings. Some buyers still think they need 20% down.

Answer: We frequently see down payments as low as 3%. In addition, down payment assistance is available for incomes up to $140,000 for a single person in Dane County. FYI Many programs do NOT require any additional inspections. 

Lack of knowledge about home buying process
This is where a lender with extensive experience with home buyer education and counseling is invaluable. There are also free home buyer education resources, including in-person, virtual and online.

Your mortgage lending partner needs to be patient, sensitive and also action oriented. A home buyer readiness review with a written action plan and follow up will get those Gen-Z homebuyers to the closing table.

With over 16 years of experience, Ellen Bernards is a trusted expert in the housing industry. With experience as a non-profit housing counselor/educator and loan officer; she has helped countless individuals improve their credit, establish a sustainable spending plan, and achieve their dream of owning their own home. Let Ellen help you on the path to homeownership

Ellen Bernards
Assistant Vice President
Mortgage Lending

PHONE: (608) 798-5914
MOBILE: (608) 576-8658   

NMLS #1573234

1205 Main Street, Cross Plains, WI 53528