It's Time To Make Your Dream Of Homeownership A Reality

Despite their best intentions, it's unlikely that all 28 million Americans will achieve this goal in the coming year, with experts projecting only 5 million homes to be in 2023.

The difference in the numbers can be attributed, in part, to the increasingly common challenges involved in buying a home. The same survey revealed that 34% of respondents stated insufficient savings for down payments, and 30% pointed to their credit score as a barrier to pursuing homeownership at this time.

If you're considering buying a home, here are some things you should know to make that goal a reality.

Understand Your Down Payment

The down payment is a substantial portion of what you'll need to pay upfront for your home. Generally, homebuyers put down some cash upfront (down payment) and finance the rest with a mortgage.

Contrary to popular belief, it's not always necessary to pay 20% of the purchase price as a down payment. According to the National Association of Realtors (NAR), the median down payment for the average homebuyer today is 14%, and for first-time homebuyers, it's just 6%.

No matter how much money you can save for a down payment, remember that there's assistance available. A local lender can show you various options to help you achieve your down payment goal. FHA loans are an option for some buyers, with down payments as low as 3.5%, while VA loans and USDA loans have no down payment requirements for qualified applicants.

In addition to assistance programs and different loan types, here are some tips to help you save for your down payment:

• • Consider closing costs. Closing costs are typically 2-5% of the home's purchase price in our market, in addition to the down payment.
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  • Keep your savings. Your down payment shouldn't wipe out all your savings. It's critical to have some money set aside for post-purchase homeownership expenses. We call this your reserves.
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  • Explore your options and seek guidance from a trusted advisor. Research, ask questions, and take advantage of resources available to buyers.

Credit Score's Keeping You Down?

Your credit score is an indicator of your financial reliability to lenders, and a higher credit score can typically result in the ability to borrow more money at a lower interest rate. 

If your credit score is preventing you from obtaining an affordable mortgage, there are steps you can take to improve it, such as paying your bills on time and diversifying your credit mix. Be sure to ask me about my “Credit Repair” tips – it isn’t as complicated as you may think.

Let's Talk

If you're considering purchasing a home this year, let's connect so we can start preparing. The Maine market has some great opportunities for first-time homebuyers, and we can help you make the most of them.

While homeownership is a top priority for many Americans, the process of buying a home can be challenging. Nevertheless, with the right preparation and guidance, it's possible to achieve this goal. Whether you're struggling to save for a down payment or improve your credit score, there are options available to help you become a homeowner. Don't hesitate to seek advice from trusted professionals and take advantage of the resources at your disposal. Connect with me today to get started!