With the dream of homeownership firmly on their minds, 8 in 10 Americans have it at the top of their priority list. This is expected to result in an estimated 28 million people planning to buy a property within 12 months – potentially leading to 5 million homes being sold by 2023. Although this goal may be aspirational among many potential home buyers due to common roadblocks like finances or availability, there are numerous rewards associated with achieving it and just as much incentive for aspiring owners who set out on such a journey!
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.
Save for Your Down Payment
With the average cost of a home on the rise, making an accurate down payment isn’t always easy. But it’s good to know that you don’t have to shell out 20% for your purchase; in fact according NAR (National Association of Realtors), median down payments are 14%, and just 6% for first-time home buyers!
Getting into your dream home can be easier than you think. With a variety of helpful loan options, like FHA and VA loans that require small or even no down payments for qualified applicants, there’s likely an option to fit both budget and lifestyle. Your local lender is here to help get the foot in the door with expert guidance on how best to reach your goal!
Beyond assistance programs and different loan types, here are a few other tips to help you as you save for your down payment:
- Be prepared for the added costs of closing – anywhere from 2-5% of your home’s purchase price.
- Save some money back to cover those post move in expenses! Homeownership can come with a lot more bills than you anticipate.
- Explore all options and get help where needed – ask questions, do research and tap into resources available specifically designed for buyers like yourself. Your trusted advisor should be able to provide guidance along the way too!
Improve Your Credit Score
Your credit score is an important financial metric that lenders use to gauge your reliability. A higher credit score could mean lower interest, more borrowing power and access to the best mortgage deals – so it pays off to keep yours in tip-top shape! If you’re looking for ways boost up your rating, try these two simple steps:
- Ensure your credit report is in good standing by paying bills on time: set up automatic payments to make this easier.
- Diversify how you use – and manage – different forms of credit for a better score, such as auto loans, mortgages or cards.
If you want to purchase a home this year, let’s connect so we can start preparing.