3 Things To Consider When Saving For A Home
Buying a home is the ultimate goal for many Americans, yet it seems to be the hardest to attain. The biggest obstacle is figuring out how you’re going to pay for it. Most of us are strapped with student loans or on the continual search for that next pay raise. Add in the daily cost of rent, food, and transportation and it already seems impossible. But don’t give up yet! Millions of people are still purchasing their dream homes every year and no matter how impractical it seems, you can be a part of that group too. Below are 3 things to consider when saving for a home.
If you know you want to buy a home but don’t know where to start, begin with what you will need for a down payment. Traditional finance experts recommend saving 20% of the purchase price. Think about that amount for a $200,000 house and you might want to give up on saving for a home before you even start! Luckily, there are plenty home buying assistance programs to supplement that. FHA loans are available to people with less than stellar credit and can cut that percentage in half. For veterans who take advantage of certain VA loans, you may not need to put anything down. There are also assistance programs that vary by state, so be sure to research available ones near you. Once you select a credible mortgage lender, they should clearly explain the closing costs to you and have a pretty accurate amount of how much you will need to move forward in the home buying process.
Maintaining Your Home
So you found a home you like and you’re able to afford the down payment. What’s next? You must consider the long-term costs of maintaining home and you don’t want any nasty surprises. Don’t try to cut corners on important things like a home inspection. What might seem like a small inconvenience can quickly spiral into a costly mistake. You will also be paying property taxes. Research the rates and be sure potential lenders are being completely transparent when crunching numbers with you. These costs, as well as home insurance and maintenance costs should all be rolled into the total costs you should prepare for in addition to a monthly mortgage.
Working Towards Your Goal
Once you have a goal to work forward to, it’s time to roll up your sleeves and get started. Look at what home is going to a right fit for you. Do you feel safe in the location? Can you take public transportation if you don’t drive? If you’re single and not planning on having kids, a one bedroom may be more feasible than a two bedroom. We love our space, but the differences in price can be substantial. Then, look at your monthly expenses and see where you can afford to cut back on your budget. Consider opening a savings account that pays interest. It won’t be substantial, but every penny will help when saving for a home. Lump sums like work bonuses or tax refunds can help you achieve your goal that much quicker. It will take discipline but buying your own home will be the ultimate reward.
Everyone deserves to achieve their home buying goals. A more detailed explanation of these tips can be found here. And if you need help kick starting your home buying process, please reaching out to the Credit Care Company. We won’t steer you wrong in putting you in your dream home. Reach out and contact us today!