Generational Wealth and Real Estate
What Is Generational Wealth?
Generational wealth is defined as benefits and assets that can be passed down through the generations.
Generational wealth can come in the form of cash inheritance, stocks, businesses, and even taught habits that help accrue wealth.
One of the most common ways that generational wealth is discussed is through passing down real estate. Historically, home and land ownership distinguished a person’s social status or standing. While social norms are certainly different now, passing a home down through the family is still an excellent mechanism for passing along wealth.
This is especially true when the home has been paid off or has equity.
Statistically speaking, the Federal Reserve reported in 2019 that the median net worth of homeowners was $255,000 compared to the net worth of non-homeowners which was $6,300. It’s easy to see why real estate dominates the conversation regarding generational wealth.
How Is Generational Wealth Built?
Realistically, it’s tough to think about savings or building wealth while navigating the economic challenges we’ve all experienced in the aftershocks of the COVID-19 Pandemic. Globally, we are still trying to get back to homeostasis.
That being said, home ownership is something anyone can plan and prepare for. This way, when the time is right, you know exactly what type of home, what locations, and which realtors/lenders you want.
It’s also worth mentioning that there are mortgage products available today that are designed explicitly for populations that have been traditionally underserved or even historically restricted from homeownership.
For example, USDA loans are offered on rural properties and feature zero down payment at closing; these loans also typically have more flexible credit requirements. As well, Conventional Loans have down payment options as low as 3%.
How Imagine Home Lending Can Help
In addition to offering these types of flexible mortgage options, Imagine Home Lending will work with clients in other ways to help realize their dreams of home ownership.
We understand that it can take time to prepare to purchase a home. Our loan officers are patient and will never pressure clients to jump into a mortgage commitment without fully understanding:
Affordability of the specific home they are interested in - your loan officer will provide you with a rate quote and a monthly cost breakdown for the property you’re interested in. This cost breakdown includes everything included in your mortgage payment: principal, interest, PMI, and taxes. This way, there are no surprises, and every client can feel entirely comfortable as they make decisions.
Ways to save - Imagine Home Lending Loan Officers are experts in the field. As an independent mortgage broker, mortgages are all that we do, and we do it with superior quality, service, and expertise. This means that your loan officer will be well versed in money-saving programs, such as classes you can take to save money and offering Homes for Heroes Rebate Program for qualified borrowers.
You have an advocate - You will never feel alone or lost as a client of Imagine Home Lending. The home-buying process can feel overwhelming and daunting, particularly for first-time home buyers. Your Loan Officer will be available by office phone, cell phone, text, and email to answer any questions you have at any point in the process. As well you will receive real-time updates about the status of your loan. This way, you can feel at peace from the time you apply until the day you close on your home.
If you’re beginning your journey to homeownership, you can apply today with our 15-minute, no-commitment required, application process. You can also contact your local branch by phone or email.
If you aren’t quite ready but dream of being a homeowner someday, we want to stay connected with you! Follow us on Facebook, Instagram (@imaginehomelending), and/or LinkedIn. There, we post industry news and updates, budgeting tips, industry insights, and so much more!