Achieving the Dream of Homeownership

Achieving the Dream of Homeownership

Owning a home is an important part of the American Dream. It provides safety and security, as well as space to grow into your future self- knowing you have this place that will always be yours makes all those hard decisions easier
The tone should also feel happy because owning something can bring people joy!

As we reflect on Dr. Martin Luther King, Jr.'s message today and his efforts to bring justice for all people through peaceful means like equality under the law or economic empowerment--including by owning homes as our first step towards self-sufficiency!--maybe you will remember that it is possible too! With a trusted advisor at your side (like me!), homeownership isn't so far off if only YOU believe in yourself enough...

1. Where Do I Start?

The process of buying a home is not one to enter into lightly. You need to decide on key things like how long you plan on living in an area, how much space you need, what kind of commute works for you, and how much you can spend.

Before you can get a mortgage, your lender will check that you’ve been managing all of the payments on other loans. These might include car or student debt as well! Do not get another credit card before seeing a mortgage lender.  They go by how much of debt ratio vs what you are making in the household.

According to Freddie Mac:

“To get a rough estimate of what you can afford, most lenders suggest that you should spend no more than 28% of your monthly gross (pre-tax) income on your mortgage payment, including principal, interest, taxes and insurance.”

2. How Do I Save Enough for a Down Payment?

You may think that saving money for a down payment will be difficult. Banks have made it so easy on us now to save. You can open a savings account and everytime you get paid your chosen amount will be automatically deposited. Tax time is a time if your lucky and you get money back that will definately make a dent in the down payment amount.  Having a garage sale to lighten your load when you do move.  Just remember when getting ready for your yard sale you are making homeownership get a little closer to happening. Your agent and lender can help you understand your options on just how much you will need for a down payment.

3. How Can I Reach My Financial Goals?

Budgeting is one of the best ways to reach your financial goals.  There are many programs and apps out there to help you get started.  If you are already on a budget depending the importance you are placing on getting a place, you can make some belt tightening adjustments to your existing budget.  You will be glad you did. Getting a house will only help you with your bottom line financially.  You soon will have equity in your home which will bring up your total net worth.

Bottom Line

As you set out to realize your dream of homeownership this year, know that it’s achievable with careful planning. Most importantly, let’s connect today so you don’t have to walk alone on this journey.

Lamont "Ben" Orr - The Orr Team eXp Realty 720-425-3365

 

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