Although the rate is decreasing, 60% of Americans are still homeowners.
However, how many Americans own what they consider to be their dream home?
Achieving this dream takes careful planning, with a dedication to saving and finding the right loan, but it is possible.
Depending on your income, you may have to consider remodeling the house in order to achieve your dreams.
Here are a few tips to help you on your way to buying that perfect property.
If you want to achieve your dreams in the future, you will have to make sacrifices now.
Once you have decided on a budget for a home and determined how much you need to raise for a deposit, you need to start saving straight away.
Find a savings account with the best interest rate and choose a monthly amount that you can stick to, then round this number up to the nearest $100.
Setting aside $425 a month will earn you $5100 a year, whereas saving $500 a month means $6000 a year.
You won’t miss an extra $75 a month, but with almost an extra grand in a year, you’ll reach your target in no time.
Getting the Best Loan
Once you have saved your deposit and can apply for a mortgage, how can you ensure you get the best loan?
If you’re one of the 30% of Americans with bad credit, you should first try and improve your credit score.
If you have outstanding debt, try taking out a new loan to pay all of them off, leaving you with just one debt, which will likely have lower interest.
This will then mean you just have to make one monthly payment until your debt is cleared.
Your credit score will then be improved and your mortgage rate more affordable.
Consider a Renovation Project
A great way of getting a bargain property is to find one which needs a bit of work.
If you are handy around the house (or have a friend who is), then you will be able to fix up a property without the costs of hiring a professional.
Crediful recommends taking out a home improvement loan where possible to help finance renovations.
This often comes with a lower rate of interest than a typical mortgage, giving you the quick cash you need to repair your new home.
When it comes to purchasing that dream home, start planning early.
It is a long-term dream, but one available to anyone on a decent income.
Save as much as you can and then put that money into an affordable loan.
If you have the time and expertise to renovate, find a property that needs work for a healthy discount.