First Home, A Financial Milestone

The sluggish economy coupled with the large number of foreclosures that have affected so many Americans has made the new generation of potential homeowners very leery about buying a home.

Still, for many young adults homeownership remains an attainable dream that represents success. For them, low mortgages rates and affordable home prices add up to homeownership being a good option versus renting, especially since rents have been steadily increasing in a number of areas.

There exist financial obstacles for potential first – time homebuyers. Therefore, you’ll have to prioritize and even sacrifice if you wish to make the move.

One of the first things required of anyone looking to make financial progress is to reduce debt, which includes credit care balances. Since many young adults only earn enough to cover their current living expenses, they may need to find ways to boost income such as working overtime or even taking on a second job. The key to reducing debt is finding ways to change the financial habits that led to it in the first place. Don’t dwell on mistakes, find solutions.

There are many expenses that may not seem so bad at first but hurt the bottom line dramatically. It’s a good idea to examine spending from a recent month to see if perhaps, cloths or entertainment account for an inordinate amount of your income.

Because a new car is usually purchased with the financing of a substantial loan, it’s often difficult to qualify for a home loan. Even an old vehicle can cost a lot when you factor in car insurance and repairs, not to mention gasoline. It may help a young couple seeking to own a home to consider selling one vehicle.

A great way to significantly reduce living costs in order to save for a down payment is moving in with family for a while, or consider a co – housing service where you may obtain housing in exchange for services, if you possess handy repair skills or otherwise.

Whatever you choose, the dream of home ownership is alive and well – you can be among those who see it come true. Especially when considering all of the incentives that builders and sellers are willing to include in the sale of their home. For example, many builders will offer cash back, no money down purchase programs, and some will even offer to pay your mortgage payment for a given period of time.

If you are in the market for a new home in Texas, Arizona, or Florida, visit with LGI Homes, the leader in affordable new houses with no money down.

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