It seems homeownership
is still a critical component of the American Dream. According to a Trulia survey,
even in 2011 — when the market was volatile and uncertain — 65 percent of young
adult consumers said they still considered owning a home a part of their life
goals. In a more recent study, that number rose to 78 percent.
And yet, while it remains important
for the vast majority of Americans to own a home, there are some major
obstacles. According to the survey,
renters looking to buy a home in the near future cited the following barriers:
· Saving enough for a
down payment
· Having a poor credit
history
· Qualifying for a
mortgage
· Rising home prices
· Unable to pay off
existing debt
· Not having a stable
job
· Rising mortgage rates
· Limited inventory
So how can prospective
homebuyers overcome these obstacles?
Save — and then save
some more
The majority of
homeownership obstacles stem from one source: money. Cash is king and this is
never more true than in real estate. Having a hefty down payment in your pocket
when home shopping means wielding considerable power — winning the contract in
a bidding war, qualifying for a mortgage, and securing a better rate on your
loan. Sounds like a no-brainer, but we all know that saving money for a down
payment is much easier said than done.
Try setting up an
automated direct deposit of funds into an earmarked savings account to help
accumulate the down payment over the course of a year.
While a 20 percent
down payment is ideal, it may also be worth checking into an FHA loan
program that requires only 3.5
percent of the purchase price as a down payment. Here in Utah, there is a number of 0% down
options.
Visit
http://utahhousingcorp.org/HTML/rbDownPaymentAssistance.shtml to see what the criteria is for these types of loans.
Clean up your credit
That credit card you
signed up for on a whim and missed some payments on in your 20s may make all
the difference in qualifying for a mortgage in your 30s. The first and most
critical step in dealing with your credit woes is to be informed. You can order
one FREE credit report a year from https://www.annualcreditreport.com (it’s the only one
authorized by Federal law) Start
cleaning up, and repairs and errors on your credit report. You may need to engage the help of a good
mortgage lender. Some even offer credit
repair.
Now is the time to
buy, intersest rates are still at an all time low and home prices are still
reasonable. The tax benefits and the
peace of mind that comes with home ownership is two huge perks….Why wait?!
HaPpY HuNtInG!!!
Kimmie Del'Andrae
Keller Williams South Valley RE
801.209.8787
kimmiedelandrae@gmail.com
