How Americans plan and save for their first homes

Each year, millions of Americans buy their first homes. What did they do to make their American dream come true? The 2016 Bank of America Homebuyer Insights Report1 reveals how people plan and save to buy a home.

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Would-be first-time buyers are …

Skipping the starter home
69% would rather wait and save money for their dream house than buy a starter home today.

56% haven’t made a purchase because they don’t think they can afford the home they want.

Relying on savings
59% plan to make their down payment from savings.

Willing to make sacrifices
95% of first-time buyers are willing to forgo other expenses to make buying their dream home a reality.

44% would put off traveling.

51% would postpone buying a new car.

Thinking about taking the plunge? Some advice from those who have been there:

Start saving early
52% of experienced homebuyers advise being proactive about putting money aside for a first home.

Stick to your budget
35% of experienced homebuyers would encourage their younger selves to stick to the budgets they made.

Consider upkeep
35% would advise making sure those budgets include home maintenance costs.

Sticking to your budgeting and savings goals can put you on the path to homeownership. Along the way, learn about down payments, real estate taxes, homeowners insurance and mortgage rates. The more you know about the process, the more prepared you’ll be to make your dream a reality.

  1. The Homebuyer Insights Report (HIR) is provided for your convenience and information only. Bank of America assumes no liability for loss or damage as a result of your reliance on information in the HIR. Our goal is for the content of the HIR to be accurate as of the date it was printed. However, due to rapid changes occurring in the programs, products, and services offered within the home financing industry, we do not guarantee the accuracy or completeness of the information presented within the HIR.
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The material provided on this website is for informational use only and is not intended for financial or investment advice. Bank of America and/or its affiliates, and Khan Academy, assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional when making decisions regarding your financial or investment options.

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