A recent Harris Poll survey reveals that 8 in 10 Americans prioritize homeownership, with a whopping 28 million planning to make the move within the next 12 months. While the interest in homeownership is undeniable, achieving this goal can be challenging for various reasons. In 2023, experts project around five million homes to be sold, leaving many wondering about the gap between intent and realization. This article delves into the hurdles identified by potential homebuyers and provides actionable tips to help overcome them.
Challenges Identified by Potential Homebuyers:
According to the survey, respondents pointed to specific obstacles preventing them from pursuing homeownership:
34% cited a lack of savings for a down payment.
30% expressed concerns about their credit scores.
Addressing the Challenges:
Save for Your Down Payment:
The down payment is a significant upfront cost for homebuyers. Contrary to the common myth of a 20% down payment requirement, today's reality is more flexible. The National Association of Realtors (NAR) reports that the median down payment is 14% for the average buyer and just 6% for first-time buyers.
Regardless of your target down payment, various options and assistance programs can help you achieve your goal. Local lenders can guide you, and loan types like FHA, VA, and USDA offer down payment options as low as 3.5% or even zero for qualified applicants.
Additional tips for down payment savings:
Factor in closing costs (usually 2-5% of the home's purchase price).
Ensure your savings extend beyond the down payment to cover post-move-in homeownership expenses.
Leverage resources and consult your trusted advisor for expert guidance.
Improve Your Credit Score:
Your credit score plays a crucial role in securing an affordable mortgage. Higher scores often result in better interest rates. To enhance your credit score, consider the following steps:
Pay bills on time to boost your credit reliability.
Diversify your credit portfolio with various types of credit, such as auto loans, credit cards, and mortgages.
Conclusion:
If homeownership is on your agenda for the coming year, it's crucial to address these challenges proactively. Connect with professionals to explore down payment assistance, loan options, and expert guidance. Whether you're saving for a down payment or working to improve your credit score, strategic planning and the right support can turn your homeownership dreams into reality. Let's connect and start preparing for your journey toward homeownership this year.
Comments