Most millennials dream of becoming homeowners one day. But a recent report shows that a majority of them haven't saved anywhere near the amount necessary for a down payment, putting their homeownership dreams far into the future—and possibly out of reach. About 80% of the younger generation hope to buy a home, according to the study from rental website Apartment List. But 36% of these wannabe homeowners plan to wait more than five years to take the plunge into homeownership.

We all know that buying a home is a big financial decision—likely among the largest you will make your life. So what is all your money going toward, really? It goes far beyond just principal and interest on the actual home. Check out this list of monthly expenses you will likely encounter as a homeowner. Mortgage If you aren’t paying for your home upfront in cash, you will have to finance it. Your monthly mortgage payment goes toward the amount you originally borrowed (princi

What is an amortization schedule? When you borrow money to buy a home, one of the documents you’ll see is an amortization schedule provided by your mortgage lender who could be a retail bank, a mortgage bank, a mortgage broker, or elsewhere. The word “amortization” refers to the repayment of a debt through regular payments until the loan is paid off in full. What is an amortization schedule? In essence, an amortization schedule outlines your loan payments each month and helps

There's a certain point in the lifecycle of renting where you say to yourself: I just can't do this anymore. Maybe it's the upstairs neighbors, who relentlessly stomp across their apartment into the wee hours of the morning. Maybe it's the numbingly dull white walls you've stared at year after year. Or perhaps it's that bitter pill of knowledge that your hard-earned money is circling down the drain—en route to paying someone else's mortgage. No matter the reason, most of us e

Once you’ve decided it’s time to buy your own home, saving for that 20% down payment is step one toward doing it. Instead of waiting years, here are six ways to help you save up for that down payment in a matter of months. 1. Explore the market If you are saving money to buy your dream home, consider taking a detour through a lower-priced neighborhood first. Buying a lower-cost home means you won’t have to save as long for the down payment. As the home’s value goes up, you ca

Scratching together a down payment is probably the most daunting hurdle to buying a home. Yeah, you already know that Rome wasn't built in a day. Well, the same holds true for building a down payment. It takes time! Still, as long as you grease the gears early (like now), you'll barely notice you're saving until—boom!—one day in the foreseeable future you'll be sitting on a pile of money that could pave the way to homeownership. Sound good? Good. Here's how to get started. Tr

The minimum credit score for a home loan varies from lender to lender, but if you're looking to get a mortgage to buy a home, there's no question your credit score matters. A lot. If it's good, you should be able to get financing without a problem; if it's bad, you could have a tough time getting a mortgage at all. Minimum credit score for a home loan So if your credit history is less than stellar, you might be wondering how low a lender will go. “What I see most lenders do i

It's easy to fall in love with the idea of buying a home. You've got it all planned out: a five-bedroom home in your favorite neighborhood with a manicured lawn and—why not?—a nice pool. Well, if you really want to land that dream home, you'd better get started now! Step 1 is to clean up your credit score, also called a FICO score—a simplified calculation of your history of paying back debts and making regular payments on loans. If you're borrowing money to buy a home (as mos

Since the market crash, many prospective first-time home buyers have been fighting an uphill battle on their path to homeownership. Certainly it isn't for lack of trying. While millennials might be the largest group of first-time buyers, according to the NAR, they face a whole slew of daunting challenges before they can sign on the dotted line. And here's the kicker: Some of these hiccups are mostly out of their control. Bummer. Here are some of those factors that could be ba

What is a good credit score—and why should you care? Simply put, no number is more important to prospective home buyers than their credit score. These three digits are a numerical representation of your track record paying off your debts, from credit cards to college loans. If you've applied for a mortgage to buy a home, lenders check your credit score. If it's high, getting a mortgage will be a breeze; if it's low, you may struggle. So now that we've got your attention, the