San Antonio, Texas Real Estate Blog & Market News

Buying a home is still considered to be the American Dream by many; however, this dream has gotten a bit more complicated over the last year or so. One of the biggest changes to take place in the Sonoma Ranch real estate marketis that only those individuals the best credit and a substantial down payment can expect to be approved for a home loan. Simply put, lenders are not willing to give loans to those individuals who have not proven themselves to be credit worthy.

If you’ve paid your dues and have maintained a flawless credit history you are well on your way to purchasing your first home. However, along with a good credit score you must have a nice down payment for your first home. In fact, most lenders now require about 20 percent down for a new home purchase. If the thought of saving thousands of dollars for a down payment deflates you, think again: it is possible to save for a down payment; you just need a serious goal and an even more serious game plan. Here’s how to get started:

• Talk to a lender and find out how much house you can afford. Then, ask the lender how much money you will need to supply for a down payment; then voila! You have your down payment goal.
• Sit down and make a reasonable budget. Decide how much you can afford to spend each month on a mortgage, and decide how much money you can realistically save each month. In order to really begin thinking in terms of home ownership you must be prepared to save more money each month. Simply put, it is the only way to work towards a reachable goal.
• Find ways to cut down costs and save more. If you are really serious about becoming a homeowner then you must do what it takes to save money for a down payment; and that may mean finding ways to cut your monthly expenses. For example, simply skipping your morning cup of designer coffee or passing up a restaurant dinner once or twice a month can have a serious impact on your budget and your ability to save money. Most of us can save much more money than we currently are saving; it’s just a matter of self discipline and sticking to a goal.