Small steps can be the difference between renting and signing the contract on your new home in 2015.It seems homeownership is still a critical component of the American Dream. According to a Trulia survey, even in 2011 — when the market was volatile and uncertain — 65 percent of young adult consumers said they still considered owning a home a part of their life goals. In a more recent study, that number rose to 78 percent.

And yet, while it remains important for the vast majority of Americans to own a home, there are some major obstacles. According to the survey, renters looking to buy a home in the near future cited the following barriers:

Saving enough for a down payment

Having a poor credit history

Qualifying for a mortgage

Rising home prices

Unable to pay off existing debt

Not having a stable job

Rising mortgage rates

Limited inventory

So how can prospective homebuyers overcome these obstacles? Save — and then save some more

The majority of homeownership obstacles stem from one source: money. Cash is king and this is never more true than in real estate. Having a hefty down payment in your pocket when home shopping means wielding considerable power — winning the contract in a bidding war, qualifying for a mortgage, and securing a better rate on your loan. Sounds like a no-brainer, but we all know that saving money for a down payment is much easier said than done. “I found that saving money each month toward a specific goal became much more doable when I had systems in place,” says Natalie Streeter, who recently plunked down a hefty down payment on a home in the suburbs of Pittsburgh. Natalie credits setting up an automated direct deposit of funds into an earmarked savings account for her ability to accumulate the down payment over the course of a year. While a 20 percent down payment is ideal, it may also be worth checking into an FHA loan program that requires only 3.5 percent of the purchase price as a down payment. The guidelines are ever changing, so be sure to consult with an experienced loan officer to see if you qualify. Clean up your credit That credit card you signed up for on a whim and missed some payments on in in your 20s may make all the difference in qualifying for a mortgage in your 30s. The first and most critical step in dealing with your credit woes is to be informed.

Remember, You Are Not Alone! We are here to help you meet your real estate goals!

Give me a call and I can get you on the path to becoming a home owner.

Drea Rose & Butters - 619-504-7985

San Diego Real Estate Agent and pug