Almost 80% of Illinois Millennials (ages 20-36) do not own their own homes. When asked why by the National Association of Realtors in a recent study, 83% blamed student loans. This makes sense when you consider the average amount of student loan debt owed by Millennials in Illinois. This number stands at around $41,200. Unfortunately, the average annual income for this age group hovers at approximately $38,800. With their focus on paying back student loans and dealing with other financial hurtles, most Illinois Millennials have little to nothing saved for a down payment on a home. In response to this dilemma, one lending company is trying to make it easier for Millennials with student loan debt to finance homes. However, it is unclear as to whether or not this company’s short-term solution will do anything to alleviate a long-term problem.
How Employers Can Help Illinois Millennials with Student Loans Buy Homes Faster
In order to attract talent, some Illinois employers offer incentives geared toward student loan repayment and financial improvement. These include sign-on bonuses and other perks in exchange for five-year commitments from potential employees. According to the National Association of Realtors survey, the vast majority of Illinois Millennials would make this type of commitment for the right deal.
Specifically, 93% of respondents would commit to an employer for a significant sign-on bonus to put toward student loans. 92% want employers to match student loan payments in the same way that they match 401k contributions. An impressive 89% of Illinois Millennials expressed interest in long-term financial planning to assist with mortgage repayment after purchasing a home. 79% want access to free debt counseling to ensure strong credit scores and good financial health in the years ahead.
Speaking of health, a surprising 40% of Illinois Millennials blame student loan debt for negatively affecting their health. This group defines ideal employers as those that provide a good combination of student loan assistance and competitive medical insurance coverage.
How One Mortgage Company Aims to Help Millennial Homebuyers in Illinois Deal with Student Loans
Eagle Home Mortgage company wants to help Illinois Millennials with student loan debt achieve home ownership. So, they offer qualified applicants either $13,000 to put toward student loans or 3% of the home’s price. This sounds like a good deal, but finance experts are skeptical. They argue that Millennials who struggle with repaying their student loans will experience similar difficulties with mortgages. Then, if these homebuyers do run into trouble, home loans are not nearly as flexible as student loans. For example, mortgages don’t come with forgiveness options, income-based repayment plans, or the possibility of deferment.
Why Millennials Looking to Buy Homes in Illinois Should Pay Attention to their Credit Reports and Credit Scores
Only 33% of Illinois Millennials plan to improve their credit scores before starting the homebuying process. The truth is, however, that all homebuyers, regardless of age, should focus on their credit well in advance of filling our mortgage applications. Illinois consumers should understand that their credit scores and credit reports greatly influence approval odds and interest rates. Not only will good credit help you get approved for a home loan, but it will also save you money on your mortgage.
A simple formula for credit score improvement in Illinois involves timely payments, responsible credit card use, and credit report monitoring. Missing payment due dates can bring credit scores down. However, even if you make every payment on time, using more than 30% of your available credit can also hurt your credit. Finally, finding and removing credit report errors is the easiest way to protect the credit score you’ve earned.
How Illinois Consumers Should Deal with Credit Report Errors
Unfortunately, about 80% of Illinois credit reports contain errors of some kind. Also, many of these inaccuracies are harmful to credit scores. In order to find and demand the removal of credit report mistakes, visit www.annualcreditreport.com, and request free copies of your credit reports from TransUnion, Equifax, and Experian. According to federal law, Illinois consumers may do this once every 12 months. With this in mind, make sure to plan ahead with your credit report repair if you plan to purchase a home in the near future. Mortgage lenders in Illinois will not approve you if you have open disputes on your credit reports.
Next, carefully review all three of your credit reports for accuracy, making careful notes of errors and mistakes that you find. Then, instead of attempting the dispute process on your own, contact Credit Repair Lawyers of America in Illinois. When you call our firm, our team of credit pros will connect you with an experienced credit attorney who will do everything it takes to fix your credit issues. We work under the Fair Credit Reporting Act (FCRA) to get our Illinois clients clean credit reports – for free. Or, if you have open disputes on your credit report stalling your attempts at home ownership, we can help with that too. We know how to deal with even the most stubborn creditors, and, at absolutely no cost to you, we’ll get your credit reports mortgage-ready so you can get approved faster.
The Free and Legal Way to Get Better Credit to Buy a Home in Illinois
Don’t let errors on your credit reports bring your credit score down. At Credit Repair Lawyers of America, we’ve been cleaning up credit reports for consumers since 2008 for free. How do we do it? All of our fees come from the defendants in settled cases. This is why our clients pay nothing for the work we do.
Let’s start the conversation about what we can do for your credit. Set up your free consultation today by calling Attorney Gary Nitzkin at (773) 360-0665 or sending him a message through our contact page.
For more information about Free Credit Repair, please visit https://creditrepairlawyersam.com/illinois/credit-repair/.