Homeownership has long been considered the American Dream, and
it’s one every American should feel confident and powerful pursuing. But owning
a home is also a deeply personal dream. Our home provides us with safety
and security, and it’s a place where we can grow and flourish.
Today, we remember the legacy of Dr. Martin Luther King, Jr.
Many of us will remember his passion and determination for the causes he
championed, including his famous “I Have a Dream” speech in 1963. As we reflect on his
message today, it may inspire your own dream of homeownership. And if so,
know you’re not alone. With a trusted real estate advisor at your side, you can begin
your journey toward homeownership by answering the questions below.
Do I Start?
The process of buying a home is not one to enter into
lightly. You need to decide on key things like how long you plan on living in
an area, how much space you need, what kind of commute works for you, and how
much you can spend.
Then, when you decide you’re ready to buy, you’ll need to apply
for a mortgage. Your lender will look at several factors to
determine how much you’re able to borrow, including your credit history.
Lenders want to understand how well you’ve managed paying your student loans,
credit cards, car loans, and other past debts.
“To get a rough estimate of what you can afford, most lenders
suggest that you should spend no more than 28% of your monthly gross (pre-tax)
income on your mortgage payment, including principal, interest, taxes and
How Do I Save Enough for a Down Payment?
Speaking of how much you can afford, you’ll want to know what to
save for a down payment. While the idea of saving for a down
payment can be daunting, there are many different options and resources that
According to Business Insider,
automatic savings can bring you one step closer to achieving your target down
“If you receive your paycheck as a direct deposit, you may want to
arrange for your company to send a percentage of each check directly into a
savings account for the down payment. . . . The automatic-savings strategy makes it
so you don’t have to constantly remember to save money.”
Before you know it, you’ll have enough for a down payment if
you’re disciplined and thoughtful about your process. And the best part is, you
may need to save less for your down payment than you think. Your agent and lender
can help you understand your options.
How Can I Reach My Financial Goals?
Another way to increase your savings is by sticking to a planned
budget. If you’ve never budgeted before, there are tools available. For
example, MoneyFit.org provides
a budgeting worksheet you can use to create your own
plan and five rules to follow when you’re saving. They
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Fix Weak Spots
you’re already budgeting, consider finding ways to tighten your spending a bit
more to accelerate your journey to homeownership. After all, putting even a
little extra into your savings each month can truly add up over time.
you set out to realize your dream of homeownership this year, know that it’s
achievable with careful planning. And, most importantly, know that you don’t
have to walk alone. A real estate professional is there to help every step of
the way. Contact me at (904) 274-1692 to get started.