Homeownership has long been part of the American dream and yet it eludes many. According to Realtor.com the 3 top hurdles to home ownership are the down payment, poor credit history or simply not enough cash flow. With commitment, discipline and desire these can be overcome using these 3 strategies:
#1 Automate Your Down Payment Savings Saving money for a downpaymnet can be a challenge but for most people, the inaccessibility of funds curbs spending (if you can’t see it, you won’t spend it) so set up a saving account and have a portion of each paycheck automatically deposited to that account.
#2 Build Your Credit History & Keep It Clean The first thing that lenders do when you apply for a loan is to run a credit report. The credit report shows that you can pay your bills on time and that you have the ability to pay off debt. Keep all payments current, pay down loans and don’t’ ignore flaws on your credit report. Check your credit report and proactively work to remove or clean up any inaccuracies.
#3 Practice Living on a Budget Reducing your monthly expenses will jump start saving for a down payment and improve your credit. Realtor.com found that “95% of first-time buyers were willing to make sacrifices to buy their homes”. Cloths, cars and vacations were the top 3 sacrifices that prospective buyers were willing to make in order for homeownership to become a reality.
Terry Roberts, Broker/Owner