Monday, July 24, 2017

How Your Family Can Become a Part of the 35% of People Who Own Their Home

According to the Federal Reserve, approximately 65.2 percent of families owned their own home in 2013. If you and your family are currently renting a home, you may be wondering what you can to do join the majority of families by buying your first home. 

The home buying process can seem intimidating and challenging if you have never been through this experience before. However, you simply need the right strategy to turn your goal into a reality. These tips can help you to position yourself for success with your goal.

Start Looking at Homes

Some people think that they should not start looking at homes until they are ready to move forward with their home buying plans, but this is not the case. 

When you start looking at homes now, you can learn more about the market so that you can better determine how much money you need to save as a down payment and what a reasonable sales price is. 

You can also define what you need and want in a home through your search efforts. Some people even find that they become more motivated to save for a down payment by dreaming about the possibilities. 

To begin learning more about the real estate market, search for listings in different communities in your area online. You can also tour homes in new construction areas, such as homes for sale in Davis County, Utah, in your free time.

Talk to a Mortgage Broker

You may not be ready to get pre-qualified for a home loan right now, but you can benefit from speaking with a mortgage broker. A mortgage broker can tell you more about interest rates, down payment requirements, credit score requirements and more for different loan programs. 

You may need to take several months or longer to improve your credit rating and save for the down payment, and your conversation with a mortgage broker can help you to develop reasonable goals in these areas. By setting and achieving these goals, you can qualify for the financing you need to buy your first home.

Save for a Down Payment and Closing Costs

Closing costs for a home loan may be as high as two to three percent of the sales price in many cases. In addition to paying for closing costs, you also may need to make a sizable down payment

Some loan programs are available for a five percent down payment or less. However, many home buyers prefer to make a larger down payment so that they have equity in their home from day one. 

By learning about sales prices of homes that appeal to you in your local area and about loan programs you could qualify for, you can determine how much money you need to save. You can also adjust your budget so that you can meet your savings goals.

Improve Your Budget

In order to afford a mortgage payment each month, you may need to make adjustments to your budget. For example, you may need to pay off a few credit cards or refinance your car loan. 

These efforts may also help you to improve your credit score so that you qualify for better loan terms. In the months leading up to your purchase, pay close attention to your budget so that you improve your family’s financial health.

If you have never purchased a home before, the thought of owning a home can seem like a distant and even unattainable dream. However, many people are currently enjoying the benefits of being a homeowner, and there is no reason why you cannot join their ranks. 

By following these tips today, you can more easily position yourself to buy a home within the next few months or years.

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