Save To Buy A Home

Dated: 09/11/2017

Views: 180

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If you have plans to purchase a home in the near future, saving money is most likely on your radar.  Follow these 5 simple steps to help you prepare for your next big investment of home ownership! 

1. Pay off your debt & use rewards

It may sound harder than it actually is but don't over spend on credit cards or push off paying back your student loans.  Spending only what you are comfortable paying back every month on your credit card is a great way to increase your credit score.  Increased credit score will lead to increased buying power and better interest rates. If you have a credit card that rewards you for spending, take advantage of money back options!  Just make sure you pay your monthly statement balance down to zero every money to avoid paying interest! 

2. Sell what you don't need

To make a little extra money, go through your closet, garage, or storage areas and sell items you no longer have a use for.  With apps and options like Facebook marketplace selling is easy.  Snap a few pictures and post your item for sale right from your smart phone.  Remember to always use caution when determining time and place to meet prospective buyers.  

3. Track your spending and cut unneccassary expenses

A great start to saving money is to track your spending.   Knowing where and what you spend money on really helps put in perspective what expenses are necessary.  If you start to notice bad spending habits or realize some expenses aren't a priority, cut those expenditures out of your budget.  Awareness of what you spend your money on can be a very powerful tool.  

4. Set a savings goal

Having a down payment goal will increase the likelihood of setting money aside in a savings account.  Visit and consciously think of your goals often.  First time homebuyers should try and save for a 3% down payment.  Other loan types will call for a larger down payment of 5%, 10%, or even 20%.  No matter what type of financing you are securing, know what your plan is and save accordingly.  

5. Open a seperate bank account

Sometimes the easiest way to not spend money is to not have access to it.  Opening a seperate account to deposit bonus checks, birthday cash gifts, or other savings can help you refrain from spending.  Make sure this account is not linked to your check card or debit card.  Deposit funds and do not touch it until closing day! 

For more ideas of how to prepare for buying a home, contact myself or your lender.  Need ideas of where to start to pre-qualify for a home loan, let me know and I can point you in the right direction! 

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Amy Hendrix

After years of working in retail I have chosen the field of real estate to help stimulate my personal growth. I want to be involved, valued, and trusted by my clients and I want to do what is best for....

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