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:
- Follow the Financial Basics
- Find Out How Much Equity You Have
- Set Your New Home-Buying Budget
- Find the Right Dream Home for You
- 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!
Pierce Brosnan always has his wife’s back…she helped him through this pain
Numerous Hollywood couples experience their romance failing miserably over time.
It must be difficult to spend your life in the public eye when everyone and his spouse are recording everything you do, not to mention the unfavorable comments on social media.
Pierce Brosnan is frequently depicted as quite the Casanova, despite his reputation for being the ideal charmer on screen and acting opposite numerous stunning leading ladies. But in private, he is a loving husband and the epitome of a family man.
We may all aspire to the kind of connection that James Bond actor Pierce Brosnan shares with his wife Keely Shaye Smith, a journalist, author, and television host.
The ardent couple has been together for more than 25 years, and they still exclusively see each other. Their union demonstrates that real love never fades, even in the face of celebrity, aging, and all the accompanying bodily changes.
For nearly three decades, Pierce and Keely have been each other’s closest friends, lovers, and companions. Seven years after meeting at a Mexican bar, the pair got married and started dating in 1994.
Keely was assigned to interview Ted Danson, but she ended up interacting with Pierce instead. This is how she met Pierce.
Their first date seems like something from a love film. They “sat down under the stars and he held my hand,” according to Keely. Overhead, we could see fireworks and hear Kenny Loggins singing. We conversed till three in the morning.
According to PopSugar, Keely told People in 2001 that “he was captivating.”
Tall, black, and attractive—everything that would make people want to be around you. There was a playful twinkle in his eyes. I was like, “Whoa!” Whoa!
Pierce recognized Keely’s exceptional nature right away.
“I adore her vigor and fire. She possesses a strength that I could not survive without. I become faint when Keely looks at me,” he remarked.
In 2001, Pierce and Keely got married in a dreamy ceremony in Ireland.
It was originally planned for the pair to get married in 2000, but Pierce’s 16-year-old son got into a car accident in the United States. His father decided to put off the wedding, and he ended up with a spinal injury as a result.
But in the end, Ashford Castle—a magnificent Irish fortification from the 13th century—was the venue of Pierce and Keely’s ideal wedding. In addition to inviting 120 intimate friends and family members to the fairytale hotel, Pierce also covered the cost of a robust security operation to keep the public and media at bay.
raising sons in tandem
The couple, who are passionate about protecting the environment and opposing whaling and the extinction of marine life, has two sons.
Given that their two sons were born not long after they began dating, Pierce and Keely were undoubtedly a marriage made in heaven.
Since then, Keely has kept up her impressive work ethic in her own business and has done a fantastic job raising the children. In addition, Keely has done a wonderful job raising Pierce’s children from his first marriage, which ended in 1991 when Cassandra Harris passed away from cancer.
Weight of Keely Shaye Smith
Prior to her relationship with Pierce, Keely worked as a model and was an actress. Keely’s weight has been a hot topic of conversation in the past few years, particularly in gossip publications.
She gained some weight, which is undoubtedly visible to everyone, but who doesn’t as they get older? Keely may have had thyroid issues, according to some media accounts, but I still think she is stunningly gorgeous.
Sadly, because of her shape-shifting, Keely is frequently the victim of vicious trolls. The OO7 actress, meanwhile, claims he still adores his “passionate” wife and that she makes him “weak at the knees.”
He declared, “I’ve found a wonderful woman in Keely Shaye.” “Even after a million searches, I couldn’t find one as good.”
Following her marriage to Pierce, Kelly reportedly put on almost 70 pounds, according to certain tabloids. People in the media have begun to assume that Pierce would divorce his wife as a result of these rumors. Despite this, the couple has never been the subject of cheating accusations and is frequently spotted holding hands and kissing in public.
Naturally, it’s difficult to deal with trolls who criticize Keely’s appearance and try to make her feel inferior. However, Pierce has always supported his wife and frequently declares his love for her in public, which is evidence of how much he cares for Keely.
Furthermore, seeing a Hollywood woman who doesn’t undergo plastic surgery to look younger is quite refreshing. Pierce adores her wife for who she is, and Keely exudes self-assurance.
The love, respect, and devotion the two have for one another has not changed despite the passage of time and their physical changes.
They have no qualms about expressing their affection for one another. Being involved on social media, Pierce and Kelly express their love on Instagram.
For instance, in 2021, Brosnan celebrated his wife’s 58th birthday by posting a heartfelt message on Instagram:
These days, a lot of discussion centers on the tangible and material world. Because of this, it’s consoling to see that Pierce and Keely’s love is genuine and lasting.
Throughout his illustrious career, Brosnan favored to fly his wife to his filming sites in order to spend even more time with her, even though he starred alongside some of the most attractive ladies in Hollywood.
“I would give her tickets to come so we could be together because I missed her no matter where I went in the globe. We simply seemed to click,” he remembers.
Pierce Brosnan has wrapped up his role as Dr. Fate in the action-sci sci-fi film Black Adam. The actor portrays a superhero and sorcerer from the DC Universe in this role.
The 69-year-old actor did, however, take care to maintain certain aspects of his private life consistent with his job. He wore a watch that his late wife Keely Shaye Smith had given him as well as his wedding ring.
“This is our wedding ring and this is a watch that Keely bought me many years ago with an inscription that [reads], ‘Time flies on love’s wings,’” he said in an interview, providing clarification. “I decided to wear it for this character,” he continued. It appeared fitting.
He clarified that Brosnan’s decision to wear these sentimental objects while filming was justified by the fact that it fit his character, who also had a wife. “The man [has] traveled through the ages of time,” he declared. He is among the strongest sorcerers in the DC comic book universe. He did have a wife, Enza, and rumor has it that she was even more powerful than he was.
His wife was clearly overjoyed by the understated but heartfelt homage her cherished husband paid to her in his most recent motion picture endeavor. “I adore those emblems, that he brought those with him into the superpower, superhero realm,” the woman exclaimed.
These two are such a great example to us all; I love to watch them together and wish them many more happy years and memorable experiences.
Please distribute to any fan of Pierce Brosnan you are aware of.
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