The Homebuying Advice Minnesota Millennials Got That Is Secretly Holding Them Back

If you're a Millennial thinking about buying a home in Minnesota, there's a good chance you've heard the same advice for years: save 20% down, pay off all your debt, wait for rates to drop, get your finances completely in order, and then start thinking about buying a house.

None of that is necessarily bad advice. In fact, it came from a time when the housing market looked very different than it does today. The challenge is that many buyers are still using a playbook that may not fully reflect today's homebuying landscape.

One of the most interesting parts of my job is talking with people who have already convinced themselves they're years away from homeownership. Sometimes they're right. Sometimes they're not. Usually, they haven't actually had a chance to explore their options yet.

That's why I always encourage buyers to gather information before making assumptions about what is or isn't possible.

Let's Talk About the 20% Down Payment Myth

If I had a dollar for every time someone told me they were waiting until they had a 20% down payment saved, I'd probably have enough for a few extra coffee runs.

A 20% down payment can absolutely make sense for some buyers. However, it's not always a requirement. Depending on factors like credit, income, assets, loan type, and lender guidelines, some buyers may qualify with a lower down payment.

The important thing isn't whether 20% is good or bad. It's understanding what options may be available for your specific situation.

I've had conversations with buyers who were working toward a savings goal based on something they heard years ago, without realizing there may be other paths to homeownership worth exploring along the way.

Student Loans Don't Automatically Mean "Not Yet"

This is another belief I hear often, particularly from Millennials.

Many people assume they need to eliminate all student loan debt before they can even consider buying a home. While student loans are certainly considered as part of the mortgage process, their existence alone doesn't determine whether someone can qualify.

Mortgage qualification involves looking at multiple factors, including income, debts, assets, credit history, and overall financial profile.

In other words, the conversation is usually much more nuanced than, "Do you have student loans: yes or no?"

That's one reason personalized guidance can be so valuable. Two people with similar student loan balances may have very different outcomes depending on their overall financial situation.

Waiting for the "Perfect" Market Can Be Tricky

Mortgage rates matter. Home prices matter. Affordability matters.

What can be difficult is trying to predict exactly where any of those things will be six months or a year from now.

I completely understand why buyers pay attention to market trends. The challenge is that major life decisions don't always happen on the same timeline as the housing market.

People change jobs, grow their families, relocate, or simply decide they're ready for a different living situation.

Rather than focusing on finding the perfect market, I often encourage buyers to focus on understanding their budget, their goals, and the options available to them. That information can help them make informed decisions when the timing feels right.

The Biggest Misconception I See

A lot of people believe they need to have everything figured out before they talk to a lender.

They want to improve their credit first. Save more money first. Learn all the mortgage terminology first.

The reality is that those early conversations are often designed to help answer those exact questions.

Sometimes someone learns they're on track and closer to their goals than they expected. Other times, they learn there are a few areas they'd like to strengthen before applying. Either outcome can be incredibly helpful because it replaces uncertainty with a plan.

What I Wish More Buyers Knew

Most first-time buyers don't need to become mortgage experts before reaching out for information.

They don't need to have every answer.

They don't need a perfect financial profile.

They simply need accurate information about their own situation.

The buyers who tend to feel the most confident are often the ones who start asking questions early, gather information, and give themselves time to make informed decisions.

If homeownership is something you're considering, whether that's in a few months or a few years, it may be worth exploring your options sooner rather than later. Even if the answer isn't "right now," having a roadmap can help you move forward with confidence when the time is right.

This article is provided for educational purposes only and should not be considered financial, tax, legal, or credit advice. Mortgage loan approval is not guaranteed and is subject to credit, income, asset, property, and underwriting requirements. Loan program availability and qualification requirements vary. Please consult with qualified professionals regarding your specific situation.