Turn Your Dreams of Owning a Home Into Reality with these Simple Steps
An impressive 80% of Americans, according to the Harris Poll survey, prioritize homeownership and a whopping 28 million are set on purchasing in the next year. It’s clear why so many people lean toward investing in real estate: it boasts both financial and non-financial rewards that make owning worthwhile!
Despite the aspirations of 28 million Americans to purchase a home in the next year, experts project that only around five million homes will be sold by 2023. Consequently, there is a massive discrepancy between these two numbers – what could account for this? Well, it’s likely due to some of the difficulties and impediments associated with purchasing property.
In the same survey, when asked, “Which of the following are preventing you from pursuing homeownership at this time?”:
- 34% answered, “I don’t have enough saved for a down payment”
- 30% answered, “My credit score”
If you’re aiming to buy a home, here’s what you need to know to accomplish that goal.
Put Money Aside for Your Dream Home’s Down Payment
Contrary to popular belief, you do not always have to put down 20% of the purchase price as a down payment when buying your home. The National Association of Realtors has reported that today’s average purchaser pays 14%, while first-time buyers only need 6%. Your initial expenditure is an important part of owning your house, and understanding what you can afford for it is key. Don’t be fooled by long-held myths; recognizing the truth about mortgage payments will help guide you in making this significant investment!
No matter the amount of capital you have for your down payment, there are plenty of ways to get closer to achieving it. Speak with a local lender and learn about all available options designed specifically for those looking to buy their first home. FHA loans require only 3.5% in some cases! Plus, if you’re an eligible applicant, VA or USDA loans may not even require any money upfront at all!
When saving for your down payment, here are some helpful tips to keep in mind:
Don’t forget about closing costs! Your down payment should cover 2-5% of the home’s purchase price.
Hold onto some extra savings. It’s essential that you have enough funds set aside after purchasing a new property to cover any homeownership expenses.
Take advantage of all options and find an expert advisor you can trust. Do plenty of research and take full advantage of resources tailored towards buyers like yourself – then lean on counselors or experienced advisors for their expertise during this process!
Improve Your Credit Score
Your credit score is a numerical representation of your financial reliability to prospective creditors; the higher it is, the more money and lower interest rate you can borrow. If an expensive mortgage looms on your horizon due to a low credit score, don’t despair! There are two simple steps you can take today that will help improve it:
- Staying punctual with your bill payments is essential for boosting your credit score. To make it easier, set up automatic payments wherever you can.
- Additionally, having a variety of different types of credit such as auto loans and mortgages are effective in increasing the value of your credit score significantly.
Ready to purchase a home this year? Let’s get in touch now and start planning!