Americans Savvier About Homeownership in 2022
Many consumers learn from their financial missteps, but in recent years, economic issue have gone a long way in teaching Americans how to better handle investments and debt. According to a survey conducted by Better Homes and Gardens, the housing crisis made many consumers much savvier about the real estate industry.
In particular, many members of Generations X and Y – those between the ages of 18 and 35 – claim increased media coverage regarding housing issues has brought them up-to-speed on the market and will be successful homeowners in the future.
In the past, events such as the Great Depression and the oil embargo of the 1970s, resulted in a drastic shift of consumers habits. Experts now say the real estate bubble burst may have had a similar impact.
Now, roughly 71 percent of Americans between the ages of 18 and 35 understand homeownership is something that must be earned and it is not an entitlement. As a result, many claim they need to ensure their finances are in top-shape before they even consider making the transition to homeownership.
While bad credit installment loans can help you cover an unexpected home repair bill, it should never be included in your long-term plan to purchase a home.
How To Determine You Are Ready To Own A Home in 2022
Because buying a home is one of the largest investments many Americans will ever make, they take on a mortgage to fund the transactions. However, before you even approach a lender to get cash, you need to ensure your credit score (bad credit check) is in good shape. This number indicates how good you are at handling debt, and lenders can use it to determine your interest rate and the terms of your mortgage. To get an idea of where you stand, order a copy of your credit report from one of the major credit reporting bureaus: Equifax, Experian or TransUnion. Under federal law you are entitled to one free copy of this document from each of the companies every year.
This document outlines credit information, such as the account you have open, or did in the past, as well as balances. However, an estimated 70 percent of credit reports contain errant markings, so check it closely for anything that may seem out of place.
Gather The Property Information
Lenders will want to get an idea of your financial background in addition to your credit standing. To make this as easy as possible, gather all the financial documents they may require well ahead of time. This may include:
• Bank account statements
• Tax records
• Pay stubs
• Employment history
• Information on assets and other investments
With this information, a lender will get a better idea of your financial history and if you are a good candidate for a mortgage. With the housing market gaining considerable momentum so far this year, homeownership is once against very much a part of the American dream.