Buying a house is an inherently stressful process, but for first time home buyers the process can be especially complex. Many first time buyers purchase condos to take advantage of lower prices and reduce their responsibility to maintain the property.

This may appear to reduce mortgage default risk because the monthly payment is lower, but in reality making the homeowner’s association a party to the transaction adds far more default risk than the lower payment removes.

In addition, given the nature of the current economy, many millennial buyers have student loan debt, or work as 1099 contractors instead of W2 employees, which further compounds the risk and makes it harder to qualify for a home loan.

Despite the obstacles, it is possible for a millennial to purchase a home – Millennials were actually the largest segment of buyers for the past five years according to this study by the National Association of Realtors – however, millennials are likely to face greater...

MAKE SURE THE PROCESS IS AS SMOOTH AS POSSIBLE

The home buying process can be overwhelming, even for the financially savvy or experienced buyer. Stricter lending rules are partially to blame, but the bigger problem is you, dear buyer.

Yes, there are exceptions to every example, but during my years as a loan officer the biggest hurdle in 90% of delayed closings was the buyers’ lack of preparedness. I get it, it’s far more pleasant to parse Trulia or Realtor.com for your dream home than it is to spend hours organizing your financial documents. However, when you apply for the loan, don’t be surprised if it hits a roadblock because of your procrastination.

To illustrate my point, let me tell you a story that I’ve experienced more times than I care to recount:

The Story Of Joe

“Joe” wants to buy a house so, naturally, the first person he calls his real estate agent. The agent tells Joe he needs to get his financing in order, but Joe shows up to...