How to Own Your Dream Home

For most people, their first home isn’t their dream home. It starts off nice enough. But as time goes by and your family grows, starter homes tend to get a little . . . cramped.

But don’t hate on your current home too much. Because while it gave you a safe and dry place to lay your head at night, it was also setting you up to own your dream home someday.

We’ll show you how it all works and walk you through the steps that’ll get you in your dream home—one you can actually afford!

How to Get Your Dream Home in 5 Steps

Here are the steps:

  1. Follow the Financial Basics
  2. Find Out How Much Equity You Have
  3. Set Your New Home-Buying Budget
  4. Find the Right Dream Home for You
  5. Be Picky and Patient

Now let’s cover each step in more detail.

Step 1: Follow the Financial Basics

First thing’s first—you have to get out of debt, get on a budget, and build up an emergency fund of 3–6 months of expenses. Sounds pretty basic, right? If you haven’t completed these steps, then you’re not ready to upgrade to your dream home . . . yet.

Now, when you’ve got house fever, it can be hard to focus on paying off debt or saving an emergency fund before you upgrade your home—especially when you’re feeling the pressure of rising home prices and interest rates.

But whether it’s your second or third house, you should only buy a home when you’ve covered the financial basics we mentioned above. Then you’ll be ready to start the journey toward owning your dream house.

And that journey starts with your home equity. What’s equity? Well, we’re glad you asked . . . that brings us to the next step.

Step 2: Find Out How Much Equity You Have

Home equity is a pretty simple concept: It’s your current home’s value minus whatever you still owe on your mortgage.

See, in most cases, your home’s value increases over time. Similar to other long-term investments (like retirement accounts), homes gradually increase in value. There have been periods of ups and downs in the market to be sure, but the value of real estate has consistently gone up. According to the St. Louis Federal Reserve, the average sale price of a home has increased over 2,300% from 1965 to 2023! And in the last ten years (2013 to 2023), there’s been a 68% increase.1 As your home increases in value, so does your equity. In real estate terms, this is called appreciation.

Other factors that increase your home’s equity include:

  • Added value: Home improvement projects like adding square footage, updating fixtures and appliances, or even just slapping on a new coat of paint can add value to your home.
  • Mortgage paydown: Paying down your mortgage not only gets you out of debt faster, it also builds your equity. The less you owe on your home, the more equity you have.

The amount of equity you have gives you a pretty good idea of how much money you’ll end up with after selling your house. You can use that money to make a hefty down payment and cover the other costs that come with buying a home.

Find expert agents to help you buy your home.

So, how do you determine your home’s value? Well, you can get a ballpark estimate on real estate websites like Zillow, ask a trusted real estate agent to perform a competitive market analysis (which they’ll do anyway if they’re helping you sell your house), or get a professional appraisal.

Finding out your home’s equity will involve a little math, but it’s third-grade-level stuff, so don’t sweat it.

Here’s what we mean. Let’s say your home’s current value is $355,000. When you sell that house, you’ll have to pay for between 1–3% of the sale price in closing costs, another 6% in fees for the real estate agent who helped you sell it, and whatever’s left to pay off on your mortgage.

That means you can estimate clearing over $223,000 from selling your house. That’s a killer down payment on your dream home! And if your home is paid off, that’s even more money to put down and use to pay for things like repairs and moving expenses.

Step 3: Set Your Dream Home Budget

Once you know how much you’ll clear from the sale of your home, you can start making a budget for your dream home. 

The key to owning your dream home (instead of it owning you) is to keep your mortgage payment to no more than 25% of your take-home pay on a 15-year fixed-rate mortgage, along with paying a down payment of at least 20% to avoid private mortgage insurance (PMI). Never get a 30-year mortgage even if the bank offers it (and they will). You’d pay a fortune in interest—money that should go toward building your wealth, not the bank’s.

So, let’s say your take-home pay is $4,800 a month. That means your monthly mortgage payment shouldn’t be any bigger than $1,200. By the way, that 25% figure should also include other home fees collected every month with the mortgage payment like homeowners association (HOA) fees, insurance premiums and property taxes.

Plug your numbers into our mortgage calculator to see how much house you can afford.

And don’t forget to budget for all those other costs that come with the home-buying process in addition to your closing fees—things like moving expenses and any upgrades or repairs you might need to make. You don’t want these hidden costs to catch you off guard or drain your emergency fund.

Step 4: Find the Right Dream Home for You

This is where things get real. After all your hard work building up your equity (and doing a lot of math—don’t forget that), you’re finally ready to start the house hunt. Woo-hoo!

But don’t lose focus. Stay zoned in by making a list of features that make a home fit your budget, lifestyle and dreams—and stick to it throughout your house hunt. Here are a few ideas to get you started.

  • Don’t compromise on location and layout. If you plan to be in this home for the long haul, an out-of-the-way neighborhood or a wacky floor plan is a deal breaker. Look for a community and layout that’ll suit your lifestyle now and for years to come.
  • Think about how much space your family needs. While your budget has the final say about how much home you buy, you’ll want your dream home to fit your family’s needs through different life seasons.
  • Consider the school districts. If you have or want kids, the quality of the nearby school districts is probably already on your mind. But even if you don’t have kids or you’re retired, keep in mind that having good schools nearby could increase your home’s value.
  • Look for a house that’ll grow in value. Are home values rising in the area? Is the number of businesses going up? These factors can help you figure out whether your dream home will turn into a good investment.
  • Count the costs. Want that fancy master bathroom with the multiple showerheads and the Jacuzzi tub? Be clear on what’s a must-have and what’s nice to have. And don’t forget, upgraded features like that will make your dream home more expensive.

Step 5: Be Picky and Patient

We know you’re anxious to get into those new digs, but be patient. Wait for the right house at the right time. Don’t spend your money on a less-than-ideal home just because you’re tired of looking.

The key is finding a good real estate agent who understands your budget and refuses to settle for “good enough.” They’re as committed to your dream as you are and will have your back throughout the entire process, no matter what it takes.

In addition to teaming up with a great real estate agent, you can take a couple of extra steps to make sure you’re ready to strike as soon as the right home comes up:

  • Get preapproved for a 15-year fixed-rate mortgage. Having preapproved financing is a green flag for sellers—especially in multiple offer situations. And because this puts most of your information in the lender’s system, you’ll be on the fast track to closing once your offer is accepted. 
  • Offer earnest money with your bid. Earnest money is a deposit to show you’re truly interested in a home. Usually it’s 1–2% of the home’s purchase price and it’s applied to your down payment or closing costs. Even if the deal falls through, you can almost always get most of it back.

Find a Real Estate Expert in Your Local Market

Now, you might be thinking you have some work to do before you’re ready to find your dream home. Or you may be realizing your years of hard work are about to pay off! Regardless, if you follow these steps, you’ll find the house you’ve always wanted and avoid a purchase you’ll regret.

Once you’re ready, connect with one of our RamseyTrusted real estate agents. These are high-performing agents who do business the Ramsey way and share your values so you can rest easy knowing the search for your dream home is in the right hands.

Find the only real estate agents in your area we trust, and start the hunt for your dream home!

This Star Is Now Living Privately with Famous Spouse – He Proposed on 2nd Date & Still Loves Her at Any Weight

Delta Burke had once been in the center of the spotlight with project after project lining up for her, but after leaving “Designing Women,” her fame and work also started to fizzle out.

After having almost not-so-successful projects, the actress decided to stay out of the spotlight and live life like a regular citizen.

Despite her many changes, her husband of more than three decades declared he would still love her no matter what. Here’s a look into Delta Burke’s life.

Delta Burke on the set of "Designing Women" | Source: Getty Images

Delta Burke came into the limelight when she won the Miss Florida title in 1974. She went on to the Miss America Pageant, won a talent scholarship, and studied at the London Academy of Music and Dramatic Arts.

Burke got into film in 1979 when she starred in “The Seekers” and “The Chisholms.” However, she is best known as Suzanne Sugarbaker in the 1986 series “Designing Women.”

She started a production company that produced “Delta” and “Women of the House,” and Burke starred in both projects. Later, she started her clothing design company called Delta Burke Design.

Burke took the role of Suzanne Sugarbaker in “Designing Women” for five out of the seven seasons the show ran for because the show’s producers fired her.

After firing her, she said the executive producers, Linda Bloodworth-Thomason and Harry Thomason, psychologically abused her.

However, the executive producers and the show’s stars said Burke made things difficult for everybody, so they fired her. Burke said,

“Basically, it became unbearable into the second season for me. By the end of the fourth season, I just couldn’t live like that anymore.”

Delta Burke attending the 27th Annual International Broadcasting Award in Los Angeles | Source: Getty Images

Burke described the work environment as bizarre, and people didn’t believe her. She then went to ask for help from people who had power, and they didn’t help her.

Even though she missed her character after a few months, she said she had no regrets about being off the show. After over a year, she said she had gotten used to her weight but wanted to lose some pounds.

But after leaving “Designing Women,” she changed her looks and was reportedly looking heavier than before in the next series she starred in titled “Dayo.”

In 2012, while shooting her show “Counter Culture,” Burke fell. The fall led to the cancellation of the show. After that, Burke stayed out of the spotlight for some years.

Later, when she was spotted going out for lunch, she looked entirely different. In place of her signature bouffant hair was a brunette bob, and she ditched the vivid lipstick for a relatively makeup-free face.

The actress who suffered very public weight battles had also lost some weight. Besides weight problems, she had battled with depression, hoarding problems, and obsessive-compulsive disorder.

In 2008, she sought treatment at a psychiatric hospital, and even though she wasn’t looking forward to any work, she felt more than happy with life.

Burke, who is healthier and happier, was diagnosed with type 2 diabetes. However, she said her husband, Gerald McRaney, always reminds her what to eat and what not to eat.

Delta Burke at the after party of her Broadway debut in "Thoroughly Modern Millie" | Source: Getty Images

Despite everything she and her husband have gone through, her husband will always love her no matter what. She said,

“Mac loves me no matter what. He loved me when I got as big as a house. He loved me when I was a blonde.”

She said her husband didn’t tell her he hated her blonde hair until she returned to brunette. He always loved her through any situation and still thinks her body looks great even though she feels it does not.

Burke and McRaney met in 1987 when she was a guest star on his detective show “Simon & Simon.” He knew he had competition, but McRaney was not ready to let her go.

McRaney asked her to marry him on their second date even though his friends were against it. They never wanted him to marry an actress, but McRaney knew only an actress would understand his work hours.

In 1989, they got married, and their marriage was McRaney’s third marriage but Burke’s first.

McRaney started acting in junior high school after injuring his knees during a football session. He was a guest star on “Gunsmoke: Hard Labor” before making his big break on “Simon & Simon” in 1981.

Burke and the “This Is Us” actor never had children together, but she became the proud stepmom to his kids from his previous marriages.

The couple worked together on different projects, and McRaney revealed that, unlike other couples, they do better when they are together 24/7.

Gerald McRaney and Delta Burke at the Television Academy's Performers Peer Group Celebration on August 21, 2017, in Beverly Hills | Source: Getty Images

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