Homeownership is considered the pinnacle of the “American Dream.” But, let’s face it. Homes are expensive, and if you live in America, prices only seem to keep going up. While today’s homeowners face some tougher obstacles, it’s not impossible to achieve your dream, and there are some steps to take right away.
Build Your Credit and Consider All of Your Options
You’d be surprised to find out that you have a lot of lending options when it comes to financing your home. Many potential homebuyers may assume they need a large down payment or superior credit to buy a home, but it’s not always the case. You should learn about all of the resources and eligibility requirements before starting the buying process.
Increase Your Income
Owning a home is more expensive than renting without question. Taxes, insurance, unexpected repairs, and home improvements are extra bills that renters don’t have to worry about. You’ll want to keep your mortgage payment below ~ 25% of your pre tax monthly income to afford your home comfortably.
Save Extra Cash
The initial costs of moving into your home can add up quickly, so it’s a good idea to have a good stockpile of extra funds. The down payment may be considered a massive hurdle, but you won’t have to put the traditional 20% down payment. Only about one in five homeowners put down 20%, and you can use the savings for other to-do items like painting or furniture.
Be Flexible
There’s no such thing as a perfect home, and you’ll never buy a house if you think one is going to come along. You may need to live outside of your neighborhood or settle for a less than desired kitchen, but affordable homes sell quickly. You might be willing to drive a little further to work if it gets you into the home that you want. Identify what your non-negotiables are from the start and see how they compare to your housing options. If it’s too expensive, you’ll have to adjust your list.
Homeownership can easily be in your realm of possibilities, as long as you’re willing to put in the work. A detailed strategy, coupled with a devotion to succeed, will help you get on track to living in your new abode.