4 Tips to Turn ‘The American Dream’ of Owning a Home into Reality

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Many Americans like having their own home, and it is still very much thought of as a part of the American dream. Nearly two-thirds of millennials and 45% of Gen Z say the desire to be a homeowner is why they buy a home. Many people choose homeownership because it is a part of our cultural mindset and economy. Today’s homebuyers are purchasing for many reasons:

  • Low-interest rates
  • More flexibility to work from home
  • A lower house payment versus rent payment
  • Fear of missing out (FOMO) on low-interest mortgage rate loans

While 2021 had the most robust housing market in 15 years, experts predict that 2022 will be different. 2021’s housing market experienced low inventory, high demand, and a risk-averse lending environment. The extreme spikes in home prices may be in the past as home prices normalize in 2022. If you desire to be a home buyer in 2022, here are a few tips to help turn your American Dream into a reality:

don’t panic

While the housing market is experiencing low inventory, high demand, and a risk-averse lending environment, don’t rush to buy and wait until the right home for you comes along.

prepare your finances

Understand the upper limits of your budget and don’t stretch your comfort level. A qualification number is the maximum price/payment amount that likely will increase once mortgage insurance, taxes, homeowners insurance, etc., are included.

mind your credit usage

Building your credit score will help you qualify for a lower interest rate on your mortgage. Limit your credit usage and pay off balances each month since your credit is pulled at qualification and 24-48 hours before closing and can occur numerous times. 4. Save for a larger down payment- The more cash you have available for a down payment, the better the interest rate will be on your loan. Putting down 20% can also help you avoid mortgage insurance which adds to your monthly payment. Also, you will need to be prepared to pay closing costs that are not included in your down payment.

Save for a larger down payment

The more cash you have available for a down payment, the better the interest rate will be on your loan. Putting down 20% can also help you avoid mortgage insurance which adds to your monthly payment. Also, you will need to be prepared to pay closing costs that are not included in your down payment.

contact us today

Questions? Your financial professional can help. Your financial professional can answer questions about saving for a down payment or using retirement savings assets for a down payment on a new mortgage.

© 2024 Trajan® Wealth LLC. Nothing in this blog is intended as investment advice, nor is it an offer to buy or sell any security. Please consult your financial advisor for questions about your personal financial situation. All investments involve risk, including the potential for loss. Trajan Wealth clients and employees may have a position in any of the securities mentioned. Portfolio holdings and other data are subject to change at any time and without notice. Additionally, the above links provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by Trajan Wealth, L.L.C., of any of the products, services or opinions of the corporation or organization or individual. Trajan Wealth, L.L.C., bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. These materials are for informational and educational purposes and are not designed, nor intended, to apply to any person’s individual circumstances. It does not take into account the specific investment objectives, tax and financial condition, or particular needs of any specific person. Please consult with your legal and/or tax advisor before making any tax-related decisions.

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