The wealth gap betweenrenters and homeownersin the U.S. is pretty wide.
While owning a home is a reliable path to building wealth, its not the only option.
What Is Wealth, Really?
Wealth isnt about how much you have in the bank.
Instead, its about your net worth.
Thats the total value of what you own (assets) minus what you owe (liabilities).
Your assets can include things like a home, retirement accounts, stocks or other investments.
And liabilities might include car payments, credit card bills, mortgages and student loans.
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Its one of the most straightforward ways to build long-term wealth.
As mentioned earlier, a median U.S. homeowners net worth is 40 times that of a renter.
Is Your Paycheck Not Going As Far As It Used To?
We get it.Everythingis more expensive than it used to be, but your paycheck hasnt kept up.
When money is tight,these resourceswill help nearly everyone.
The answer lies in a combination of financial challenges and systemic barriers.
Rising home prices and mortgage rates have made buying a home more expensive than ever.
The median home price is nowover $400,000, and mortgage rates arehovering around 7%.
For many renters, saving up for a down payment while covering rising rents feels impossible.
That can be a substantial amount for many buyers.
Credit issues are another roadblock.
Many aspiring buyers either dont have enough credit history or struggle with low credit scores.
These barriers can make homeownership feel out of reach for many Americans.
Start Saving and Planning
Saving for a home goes beyond the down payment.
To stay on track, consider opening a separate savings account specifically for your home-buying goals.
Most conventional lenders will want to see a credit score thats at least 620. Review these reports carefully to ensure there are no errors and dispute any inaccuracies.
Pay Down Debt
Lenders will also look at yourdebt-to-income ratiowhen considering your mortgage utility.
The less debt you carry, the more attractive youll look to lenders.
Many states also offer down payment assistance programs for first-time buyers.
We Dare You to Take Control of Your Debt
Up for a debt challenge?
In 10 days,these 10 practical stepscould help you get back on the right financial track.
Everyone knows investing also builds wealth.
The trouble is, getting started can be expensive and time-consuming.
What if it didnt have to be?
So, start saving, explore alternative investments and make the most of your current situation.
Is Your Bank Holding You Back?
Got $1,000 in checking?
Thesesmart movescould help you reach your next big savings goal.
