One of the most sought after goals in many people’s lifetime, homeownership gives families financial and emotional stability. It marks the chance of a better lifestyle and, hopefully, a good investment. Sure, achieving this milestone can be a difficult process, especially in today’s competitive housing market.
If you’re currently renting in hopes of eventually buying a house, rest assured the time will come. Even though now might not be the right time to become a homeowner for some Americans, it’s important to prepare and do the research. Preparation is key to get ahead in a hot market, and there are simple ways you can get ready for homeownership while renting that may give you a better chance of buying your dream house.
In this blog, we share four ways you can get ahead while you wait for the right time:
Make a wish list: Take time to research and determine your must-haves and what you are willing to live without. Ask yourself why you want to be a homeowner, how many bedrooms you want, what locations you’d be willing to live in, and so on. Doing so will give you a better perspective of how the scenario will look like when you start your hunt.
Work on your credit score: A good credit score opens doors; it’s one of the most important factors lenders will consider when you apply for a mortgage. Typically, mortgage programs require a credit score between 580 and 620. Before applying for a loan, request a credit score report to see if you need to make improvements in your score. Remember, your credit score also influences your mortgage rate. The higher the score, the lower your rate.
Know your budget: To determine your budget, you need to know how much you can afford to pay for a house. Not only will this help you learn how much you need to save for a down payment, but it will also help you narrow down your wish list. Take advantage of digital tools like an online affordability calculator to learn how much you can afford.
Save $ for a down payment: Once you have an estimate of your price range, you can establish a savings goal for a down payment on your future home. Conventional loans typically require a 3% to 5% down payment, and at least a 3.5% down if you are using an FHA loan. It’s also good to know that every state offers down payment assistance programs (DPAs) to qualifying buyers.
While you wait for the perfect time to buy your home, you can still experience the lifestyle of homeownership in one of our rental communities. Every home we build is thoughtfully-designed with comfort and quality in mind. Contact us today to find out more about our current inventory in your area.