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!
How to Remove Pen Ink from Leather
We have all had to deal with leaky pens and what they do to leather—put a broken ballpoint pen or Sharpie in a pants pocket or leather bag by mistake, and suddenly, a blue or black blotch appears on your leather jacket or couch. These pen marks last forever if untreated, and if you don’t know how to remove pen ink from leather, cleaning these stains can be frustrating and may result in a bigger mess.
You don’t want to cover up or throw away an expensive and good-looking piece of furniture or purse because of an ink stain, but what cleaning options do you have?
Fortunately, there are some tried-and-true methods for getting ink out of leather – some methods require specialized ink removers, and some of them need nothing more than household cleaning products. In this article, we’ve gathered some of the most effective ways to remove pen ink from leather
How to Get Ink Out of Leather
Evaluate your stain and determine the best way to treat it. How to remove an old oil stain from a leather bag is a little different than dealing with ink.
Use Hair Spray on the Stain
The magic ingredient in hair spray that works on ink stains is isopropyl alcohol, otherwise known as plain old rubbing alcohol. Over time, companies have reduced or phased out isopropyl alcohol levels in hair spray completely, so this method is not as effective as it once was.
However, if you don’t have rubbing alcohol in the home, you can use a hair spray with a relatively high alcohol content to clean your leather. Before you try to clean pen marks with hair spray, you should test the cleaning method on an inconspicuous place on the leather.
Spray the pen marks, allow it to sit for several minutes, and then rinse the spot with cool water. Afterward, dab – don’t rub – the place with a dry cloth or paper towel.
Apply Alcohol to the Stain
Alcohol can be useful for how to remove Sharpie or other ink from leather but it can damage leather if you apply it carelessly. Isopropyl (rubbing) alcohol is the most effective. Denatured alcohol or nail polish remover may work better, but you run a higher risk of damaging the leather.
Make sure to test the alcohol in a hidden spot before using it on the stain to ensure that you will not harm the fabric. Apply the alcohol with a cotton swab or cotton ball and rub lightly as you apply.
The ink should soak into the cotton swab. Do not allow the alcohol to sit too long after application – quickly dry the area with a hairdryer, if possible, or it might eat away at the leather.
For Non-White Leather, Try this Homemade Leather Cleaner
This home remedy is effective and safe to use on non-white leather, but always make sure to test the mix on a small area first.
Lemon Juice-Based DIY Leather Cleaner Recipe
1 part lemon juice
1 part cream of tartar
Mix the two ingredients into a paste. Then, apply the mixture to the ink spot using a microfiber cloth. Work the paste into the stain, and let it sit for a few hours if the stain remains.
Once you have cleaned the area with a damp cloth, apply a commercial or DIY leather conditioner to ensure that the leather is maintained, and you are working on a piece of leather furniture, be sure to always follow the tips for cleaning a leather couch for best results.
Homemade Cleaner for White Leather
White leather is more sensitive to caustic ingredients, so if you have an ink spot on white leather, use this cleaner. Make sure to test the cleaner in an inconspicuous area first.
DIY White Leather Cleaner Recipe
1/4 cup vinegar
1/2 cup olive oil
Mix the ingredients in a spray bottle. Spray the mixture on the affected area, and let it sit for five minutes or so before wiping it off.
As with non-white leather, you should apply a professional or DIY leather conditioner to properly maintain the leather, and if you are cleaning leather furniture, make sure to follow the tips for cleaning a leather couch.
Use a Commercial Leather Cleaning Product
If your home remedies don’t work for removing acrylic paint from leather, commercial cleaners might be the way to go. They can cost a bit, but they are guaranteed to not damage your leather if used correctly.
As with home cleaning solutions, however, you should always test the product on a small area before trying them on the stain.
Commercial Cleaning Product Advantages
They are carefully tested and should be safe for cleaning leather.
They may work better on stubborn stains.
They usually require no mixing or measuring.
Melamine foam, also known as a Magic Eraser, is a significant first step toward stain removal. If the Magic Eraser doesn’t do the trick, try to remove pen from leather with liquid cleaners.
There are many excellent commercial leather products available, and many of them are valid on ink stains. Choose the best one for your needs, and you should always follow the included cleaning instructions.
Take It to a Dry Cleaner
If all else has failed you and you’re willing to pay to get your leather
purse or sofa back to pristine condition, you might consider a trip to the dry cleaners. Dry cleaners have a lot more tools and tricks to get Sharpie off of leather, and they have access to more powerful cleaning chemicals.
If you choose to take your leather to a dry cleaner, you should always do research and choose a reputable business. And, be sure to inform the cleaning staff of any special care instructions before entrusting them with your leather.
After you’ve cleaned out the stain, consider applying a leather protector to avoid future stains. It doesn’t require ballpoint ink to damage leather, after all—a single drop of water on unprotected leather can ruin it.
If you’re the victim of a broken ink pen and have been unfortunate enough to find yourself with a big black or blue ink stain spreading across your favorite leather item, we hope that you found this article on how to get pen ink out of leather to be helpful.
Whether you use a home cleaning solution or a professional, patience and persistence can get your leather goods clean, ink-free, and beautiful again.
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