What You Can Do Right Now to Prepare for Homeownership
September 10, 2021
One thing we have seen for sure this year is rent prices soaring. While they are still super high and are continuing to rise, many renters are looking for ways they can get financially ready to buy their first home. According to recent data from ApartmentList.com:
“The first half of 2021 has seen the fastest growth in rent prices since the start of our estimates in 2017. Our national rent index has increased by 11.4 percent since January . . . .”
If you are a renter the rise in your rental costs may make it seem impossible to get prepared to purchase your first home. But the truth is, there are ways you can do it and in my opinion you should prepare to purchase your first home this year. I want to help you escape the rising rent prices and put your money to better use paying for something that you will one day own or at least have equity in. Here are some useful tips to help you get ready for this big step:
Start saving anything you can! Even a small amount each week can add up over time.
Any expert would agree, setting aside any amount that you can, even smaller amounts of money, into a dedicated savings account is a great starting point when it comes to saving for a down payment. Expert Cindy Zuniga-Sanchez, Founder of Zero-Based Budget Coaching LLC, says:
“I recommend saving for a home in a ‘sinking fund’ . . . . This is a savings account separate from your emergency fund that you use to save for a short or mid-term expense.”
Take a detailed look at your finances and work on your credit. Get that score up!
Another tip experts recommend: take a look at your overall finances, add up any regular bills you have and total up your monthly earnings. Then take a look at your credit score. Look for any ways you can reduce your debt. This is the best way to make your credit score rise. According to the HUD, the average credit score of first-time homebuyers is 716. If you’re not sure what your credit score is, there are several apps or online ways you can check your credit score. But if you are really serious about buying a home call me and let me get you in touch with one of my trusted lending professionals. They can assess your credit, your income, bills and get you all the information you need to prepare for purchasing your first home! If your score is below that average, don’t give up. Remember that an average means there are homeowners with credit scores both above and below that threshold.
Here is the bottom line friends, if you’re interested in becoming a homeowner sooner rather than later, I can help you! Planning to be a homeowner one day, is a huge step but it's so worth it! The best thing you can do is start preparing now. Even if you don’t think you’ll purchase for a few years, meeting with a trusted real estate advisor, that’s me… and letting me help you to understand the process will set you up for success on your journey to homeownership.