Young adults may be eager to buy, but 75% of first-time home buyers say they’re overwhelmed about the purchase process, according to TD Bank’s First-Time Homebuyer Pulse of more than 850 millennial buyers between the ages of 23 to 38.
Many have not taken the first step to talk with a lender before they start actively looking. Only 30% of respondents say they have spoken to a mortgage lender before starting their house hunt. “To put the cart before the horse is to pursue a significant life decision with possibly incomplete or inaccurate information,” says Rick Bechtel, head of U.S. residential lending at TD Bank.
Young adults have a lot on their mind. They’re concerned about their job stability (51%) and the stability of their relationship with their significant other (35%). They’re also concerned about the economy (57%) and potential changes in policies due to the 2020 election (47%).
The housing crisis still lingers in their minds too. Forty-seven percent of respondents say that growing up during the housing crisis has made them more nervous to buy a home. After all, more than half—55%—say that their family or a family they knew had lost their house during the housing crisis.