Owning a home is a priority for 8 out of 10 Americans, according to a recent Harris Poll survey. However, only a fraction of those who want to buy a home will actually be able to accomplish that goal this year. That's because buying a home can be challenging. But don't let that discourage you! With the right approach, you can make your dream of homeownership a reality.
To help you get started, here are two crucial steps you need to take:
- Save for Your Down PaymentA down payment is a significant upfront payment that most buyers make when purchasing a home. The National Association of Realtors (NAR) reports that the median down payment for the average buyer is currently 14%, while it's just 6% for first-time buyers. However, many aspiring homeowners struggle with saving enough money for a down payment.
If this sounds familiar, don't worry. There are many options available to help you achieve your down payment goal. A local lender can walk you through your options, including FHA loans with down payments as low as 3.5% and VA and USDA loans with no down payment requirements for qualified applicants. Just make sure you factor in closing costs, which typically range from 2-5% of the home's purchase price.
- Improve Your Credit ScoreA high credit score can help you qualify for a better interest rate and borrow more money. So, if your credit score is holding you back from getting an affordable mortgage, take steps to improve it. Paying your bills on time and maintaining a mix of different types of credit (e.g., auto loans, credit cards, and mortgages) can go a long way in boosting your score.
In summary, if you want to make your dream of homeownership a reality, it's important to start preparing early. By saving for your down payment and improving your credit score, you can increase your chances of qualifying for a mortgage and achieving your homeownership goals. If you're ready to take the first step, let's connect and discuss how we can help you get there.
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