My family has been through a rough few years financially. We have had ups and downs, but we are finally carrying less debt than we have in years. It seems that is in line with what researchers are finding. Young adults aren't as far in debt as someone who would be 35 years or older, but that doesn't mean it is a good thing. An article posted on CNNMoney states that the reason for the decline in debt is because younger adults are not qualifying for loans like in previous years. The number of couples owning their own home has dropped by 6% from 2007 to 2011. This is not only astonishing, but it has me a little on edge. We are saving to buy a house, and I don't want to be held back. This is how I plan to beat the trend and qualify for a mortgage when we are ready.
Right now my credit score is decent. I have been working on building it with multiple lines of credit. I am careful to watch my credit to debt ratio, and feel like I am doing well with it. I have several lines open with balances, but nothing is maxed out. I have been on time with all payments except one, and that was due to mailing it later than I should have. All in all, this is probably the best thing I have going for me right now.
Proof of income
I have records of what I make from freelancing, but my income changes from week to week and month to month. It is not something the lender will approve, so I am trying to find a full-time job that will be sufficient. The extra money will be a bonus, and the proof of income will be easy to get. I have been trying to find something for quite some time to no avail. I am still marketing myself and my skills, and it seems that the last few months have improved slightly.
Most of our income tax refund has been set aside towards a down payment on a home. We are not looking to buy something fancy or big, we just want something that will fit our needs and that doesn't need a ton of work done to it. Our target range is between $60,000 and $70,000, and we already have over 10% of that saved. The bigger the down payment, the less our mortgage payments will be.
With the proper knowledge and enough time, we can definitely beat the decline and own our own home. It will not be an easy task, but I am determined to get it done and be one of the successful young adult couples in the 2014 studies.
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