Logo Logo
  • About
  • Properties
    • Featured Listings
    • Sold Listings
  • Home Search
  • Testimonials
  • Let's Connect
  • (949) 427-1101
  • Home
  • About
  • Properties
    • Featured Listings
    • Sold Listings
  • Neighborhoods
  • Home Valuation
  • Home Search
  • Buyer's Guide
  • Seller's Guide
  • Testimonials
  • Videos
  • Blog
  • Press Releases
  • Let's Connect
  • Developments

How To Make Your Dream of Homeownership a Reality

According to a recent Harris Poll survey, 8 in 10 Americans say buying a home is a priority, and 28 million Americans actually plan to buy within the next 12 months. Homeownership provides many financial and nonfinancial benefits so that interest is understandable.

However, it’s unlikely all 28 million Americans will accomplish that goal in the coming year. Experts project a total of around five million homes will be sold in 2023. Why is there such a big difference? It’s partly because there can be challenges to buying a home.

In the same survey, when asked, “Which of the following are preventing you from pursuing homeownership at this time?”:

  • 34% answered, “I don’t have enough saved for a down payment”
  • 30% answered, “My credit score”

If you’re aiming to buy a home, here’s what you need to know to accomplish that goal.

Save for Your Down Payment

Your down payment is a big chunk of what you pay up front for your home. For most home purchases, buyers put down some amount of cash up front (a down payment) and then take out a loan (a mortgage) to pay for the rest.

It’s a longstanding myth that you need to pay 20% of the purchase price for your down payment. In reality, 20% down isn’t always required. In fact, according to the National Association of Realtors (NAR), today’s median down payment is 14% for the average buyer and just 6% for a first-time buyer.

Regardless of how much money you can save for your down payment, know there’s help available. A local lender can show you options to help you get closer to your down payment goal. Plus, there are even loan types, like FHA loans, with down payments as low as 3.5% for some buyers, as well as options like VA loans and USDA loans with no down payment requirements for qualified applicants.

Beyond assistance programs and different loan types, here are a few other tips to help you as you save for your down payment:

  • Remember to factor in closing costs. In addition to your down payment, closing costs are usually 2-5% of the home’s purchase price.
  • Maintain your savings. Your down payment shouldn’t deplete all your savings. It’s important to still have some money set aside for homeownership expenses after you move in.
  • Explore your options and lean on your trusted advisor for expert guidance. Do your research, ask questions, and look into the resources available for buyers like you.

Improve Your Credit Score

Your credit score is a number that indicates how financially reliable you are to lenders. A higher credit score usually means you’ll be able to borrow more money at a better interest rate. If your credit score is preventing you from getting an affordable mortgage, there are steps you can take to improve it. Here are two:

  • Pay your bills on time. When you pay your bills on time, your credit score improves. When you’re late, it takes a hit. One way to make paying your bills on time easier? Set up automatic payments when and where you can.
  • Mix it up. From auto loans, to credit cards, to mortgages – there are several different types of credit. And having a mix of them improves your credit score.

Bottom Line

If you want to purchase a home this year, let’s connect so we can start preparing.

 



 

 

Work With Us

We're a full service provider for our clients. We not only know how to sell a product, but also know how to market effectively, manage transactions, handle problems, and provide solutions. Whether you're looking for guidance on design, staging, strategic planning or execution, we're there for you.

Let's Connect

NEWSLETTER

Subscribe to receive the latest real estate market updates, exclusive new listings, architecture & design inspiration and more.

Success!

Follow Us

Receive Exclusive off market Listings in your inbox
Sent!
Location
Office

3333 Michelson Drive
Suite 300
Irvine, CA 92612

 

Contact Us
Primary Contact

[email protected]

(949) 427-1101

Chris Kwon | CA DRE# 01918857

Real Brokerage Technologies | CA DRE# 02022092

 

Kwon Home Group is a real estate group affiliated with Real Brokerage Technologies. Real Brokerage Technologies is a licensed real estate broker licensed by the state of California and abides by equal housing opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit property already listed. Nothing herein shall be construed as legal, accounting or other professional advice outside the realm of real estate brokerage.

Luxury Real Estate Team For Orange County, CA
  • About
  • Featured Listings
  • Neighborhoods
  • Testimonials

Website Designed and Developed by Luxury Presence

© Copyright 2020 | Privacy Policy

Kwon Home Group

Contact

Inquiry

Success!

link

Contact Details

[email protected]
(949) 427-1101

 

3333 Michelson Drive
Suite 300
Irvine, CA 92612

 

Chris Kwon | CA DRE# 01918857