Starting the process of buying a new home can be a bit overwhelming. The first step before you began is to know how much you are saving for and what homes will fit your price range realistically. There is a lot of budgeting and hard work involved, but its all worth it knowing you get your dream home in the end.
Where do I start?
Take the time to sit down and write out a timeline and saving goals for each month. This is a great first step into your home buying journey. What are must haves in your home? How much will you need to have saved and by when? Do the research needed about down payments, extra costs, and how much you will need to put down. Make a good savings plan to make it happen!
Create a Monthly Budget
Some other ways to make more room in your budget could be earning an additional income or cutting back on expenses. Be honest about your spending habits and adjust your budget accordingly. Depending on how much you are trying to save, research or talk to a financial adviser about different tips on how to build up your savings account.
Re shop for cheaper insurances, monthly internet or cable, and any other monthly withdrawals coming out of your bank account.
Pay Off Any Debt
You will actually want to make this your top priority above all else. Attack any debt that has been weighing you (and your credit score) down. Once these debts are paid off, there is so much more room in your budget to set aside for your down payment. Paying off your debts also increases your credit score, which will lower your monthly mortgage payment. Ultimately, you will feel a lot better buying a new home with no burden of debt on your back.
Here are some more common saving tips from NerdWallet:
Put aside tax refunds, bonuses, or any additional cash that is coming in
Set up automatic transfer from your checking account to your savings
Find a financial or savings app to better track your progress, such as Mint, SavedPlus, or Dollarbird
Refinance your student loans! Lower your student loan interest rate to save on the total cost of your loan.
Visualize Your Goal
Although saving takes a lot of self discipline, just think of how accomplished you will feel once you reach your goal. When you want something bad enough it happens, because you have made it your top priority. So spend your money wisely, pay off debts, and keep visualizing what you are working towards.
Once you’re ready to buy your home, CALL/TEXT us: 480-415-5233
If you want to learn about some financing options, or if you’re looking to get pre-qualified, contact Parker Turk at Sun American Mortgage Company: 602-616-3774.