Most people would love to buy a home but with prices skyrocketing throughout the country – and especially in California – it can seem impossible to meet this goal. At Berkshire Hathaway HomeServices we are here to help you find the right home and we are here to advise on how you can begin to actually afford to buy your dream home.
Learn More About Financing Options
Before you decide you can’t afford to buy a home, take the time to find out what financing options might be available to. This step will you find out what mortgage programs you’re eligible for, how much of a down payment you would need, and who can lend to you. The best starting point is to find out what your FICO credit score is and then find out what the minimum FICO requirements are from various lenders.
Take a Look at Your Income
The truth is this: If you do not make enough money to save money then you likely do not have enough money to buy a home. Even if you are given a gift from family to make the down payment, you will need money in savings in case an emergency comes up. Consider that households that rent have a median income of $37,500 while households that own property have a median income of $75,000. If you are closer to the former than the latter, then finding ways to increase your income is probably the first step for you.
Save Up – But You May Not Need as Much as You Think
Yes, you need to save up some money – but it may not be as much as you assume it will be. The ideal is to put 20% because you then avoid having to pay for private mortgage insurance, but this can be a huge hurdle for many people. In fact, only one in five recent buyers reported putting 20% down and more than half down less than 50%.
Be Flexible – Within Reason
This is a tricky one that can be much easier with the help of the right real estate broker. You do want to be flexible – but not too flexible. For example, if you are a couple who wants a forever home and you plan to have children, you do not want to be so flexible that you buy a one-bedroom condo. On the other hand, you do not want to miss the house of your dreams just because the carpet is not the right color – you can always replace it.
If you need additional help finding the right home you will be glad to know that Berkshire Hathaway HomeServices is here to help. All you need to do is contact us at (310) 373-0021 with your questions and we will be glad to get you started right away.