A recent CNBC/SurveyMonkey survey found that 34% of renters want to own a home but believe they may never be able to afford one. That concern is shared across age groups, with similar numbers among younger and middle-aged renters.

Higher mortgage rates are one reason. The survey was conducted when the average 30-year mortgage rate was around 7.56%.Home prices have also increased. The median existing-home price reached $429,100 in August, up about 38% from August 2020, according to the National Association of Realtors.

For many renters, saving enough money is the biggest hurdle.52% say they cannot afford a down payment, while others point to income, credit, or mortgage rates as challenges. In regards to down payment, many borrowers think that you need to put 20% down but that is not true. There are products that allow you to put far less than that down as a down payment.

Still, 87% of renters say they want to own a home someday. And while buying may be harder today, renting can make sense if homeownership would stretch the budget too far.

For those who want to buy, the best approach is to start preparing now by building savings, improving credit, and working with a lender who can explain what is actually needed to qualify for a home loan.

Source : https://bit.ly/3VVdUZS