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:

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!

We pulled down a false wall in the cellar of our 1857 house and found this! What is it? Any idea?

A questioner said:

We pulled down a false wall in the cellar of our 1857 house and found this! What is it? Any idea?

May be an image of water heater and hearth

Some of the people comments about this found were:

How come no one talking about the tea kettle that’s just suspended in the air
Weird it was covered
My mother cooked on one of these, she made amazing meals, also bread and cakes, Friday was bake day. We lived on the moors in the borders of England and Scotland. I now live in western Maryland, US.
Excellent find, too bad it was not a treasure chest
That is beautiful. An antique dealer will give you quite a lot of money for that. I wouldn’t move it or touch it until I talk to antique dealers.
What an amazing find. I wonder why the former owners covered that up.
Nice I would start tearing down other walls maybe find something else!
It was probably too heavy to get it out of the cellar so they left it.
Wooooow lucky you I would be over the moon and use it with pride … I remember staying with my nan at weekends she had one and remember her having an iron on there to do her ironing … and doing toast on the fire it was lovely… lucky you
What a treasure
So the original kitchen may have been in the cellar or it was the kitchen for the servants. Love it
I’d leave it right there. Dust it off. Then design around it. It would be the focal point of your room.
NO!!!is it full size or a child’s size? Whatever! What a FIND!
It appears like they intentionally closed up the fireplace with stove and kettles intact for a future find like this. As a builder/contractor we almost always leave little mementoes or time capsules in the wall or closed off portions of the build. We often include owners information and pictures as well as our information. Coins from the year we did the project. Even bran new tape measures or hammers. Sometimes I’ve included brief essays on current events or political thoughts. It’s fun.
Imagine putting a wall up with the kettles still on the stove!
It looks child Size. That’s truly amazing!
Do you think this was original kitchen?
Wow! They left the tea pots in there!!
I used to black lead one of these for my gran, when I was a child. Of black lead can still be bought ot will come up like new.
That old black grate is in great condition. So what are you going to do with it?
What are your thoughts?
Owning an old house often feels like holding a piece of history in your hands. Each creak and groan of the floorboards, each worn corner, and each weathered brick tells a story. When we bought our 1857 home, we knew it had secrets. Little did we know that one of its most remarkable stories was waiting to be uncovered behind a false wall in the cellar.

The Discovery

Our journey began with a simple home improvement project. The cellar, with its stone walls and cool, damp air, had always intrigued us. One wall, in particular, seemed different. It sounded hollow when tapped and had an odd, almost hidden, seam running down its length. Curiosity got the better of us, and with a few tools and a lot of determination, we decided to investigate.

As we carefully dismantled the wall, brick by brick, our anticipation grew. Finally, the last layer crumbled away to reveal a dusty, forgotten room. What lay within was beyond our wildest dreams.

The Hidden Room

The room was like a time capsule, sealed away and untouched for decades. Dust motes danced in the beams of our flashlights, illuminating a collection of objects that seemed frozen in time. We found old furniture, crates filled with yellowing papers, and a variety of curious artifacts.

Treasures and Traces of the Past

Among the most fascinating finds were:

Antique Furniture: A beautifully crafted wooden rocking chair, a small writing desk, and a trunk filled with linens and clothing from the 19th century.
Historical Documents: Letters, diaries, and legal papers that offered a glimpse into the lives of the home’s previous occupants. One particularly poignant diary detailed the daily life of a woman who lived in the house during the Civil War.
Vintage Tools and Equipment: A collection of old tools, a sewing machine, and even an early model of a phonograph.
Personal Items: Family photographs, a set of silverware, and a few pieces of jewelry that likely held sentimental value.
Piecing Together the Past

As we sifted through the items, we began to piece together the story of the house and its inhabitants. The documents revealed that the house had been a refuge during tumultuous times. The hidden room might have been used to store valuables or even serve as a safe haven during periods of unrest.

One particularly fascinating letter was from a former owner to a relative, describing how the false wall was constructed to protect the family’s most prized possessions from potential looters during the Civil War. This discovery added a layer of historical significance to our home, connecting us to the broader tapestry of American history.

Preserving Our Find

Realizing the importance of our discovery, we decided to preserve and document everything we found. We contacted local historians and museums, who were thrilled at the prospect of examining the artifacts and documents. We even received guidance on how to properly preserve the items to ensure they remained in good condition.

A New Chapter for Our Home

Uncovering the hidden room has deepened our appreciation for our historic home. It’s more than just a place to live; it’s a repository of memories and stories that have transcended generations. We plan to incorporate some of the artifacts into our home decor, creating a small museum-like display to share the history with visitors and future generations.

Conclusion

Our discovery behind the false wall in the cellar of our 1857 house has been nothing short of extraordinary. It serves as a reminder that the past is always with us, waiting to be uncovered and appreciated. As we continue to explore and restore our home, we look forward to uncovering more secrets and preserving the rich history that lies within its walls.

Crazy Animals

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How to Own Your Dream Home