Buying a home is exciting and can be a big step in someone’s life. Now with the new year, home buying is starting to heat up. Keep some of these home buying habits below in mind for the new year. They can help save you time and money, and are practices you can adopt on a daily, weekly, or even monthly basis.
1) You should cut down on your budget in order to save more money for a down payment. Those who can put down a 20% payment can save by not having to pay private mortgage insurance. This is a goal you can reach if you make a few lifestyle changes, like eating out less often, getting rid of cable, canceling certain memberships, and brewing your own coffee at home.
Consider selling your bigger ticket items, such as a car, and buying a cheaper one to get you through. The more money you can divert from your spending to a down payment, the better off you will be when it comes time to buy a home.
2) Adopt the habit of making deposits on a weekly basis into a savings account for your future home. Putting in a bit of money each week can quickly add up into something that can be used as part of a down payment. The habit of putting money away on a weekly basis gets you in the routine of always contributing towards the savings fund.
3) Start making time in your schedule to attend open houses. This will help you because it can be a good motivation to save your own money and will give you an idea about what types of homes are up for sale. It will also give good insight into the market and help you gauge what types of houses are selling, and for what prices. This knowledge can be valuable when it comes to doing your own research into homes that are for sale. You might also make a few connections along the way that can be very useful once it comes time to actually make the moves on a particular home.
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4) Get into the habit of actually saving for homeownership on a monthly basis. Figure out the estimated expenses for things such as lawn care maintenance and the mortgage. You should set that money away and try to live on the surplus amounts of cash for the month. This will give you an idea of what it is really like to own a home and let you see if your budgeting is on track. If you find yourself struggling month-to-month, then you know it would be prudent to purchase a cheaper home, or one that you could save on some of the homeownership costs.
5) Make sure to get in the habit of keeping on top of your credit. This is a good home buying habit because a good credit score helps you get a better interest rate. Higher credit scores come to those who pay bills on time, especially the ones for auto loans and leases.
Set your bills on automatic payments and be sure to pay off any medical bills or delayed rent checks. If you have any credit card debt, take the time to pay them off at the end of every month. Getting in the habit of paying bills on time helps you as a future homeowner and will set you up for the buying process with a better credit score.
Do you have a question about home buying? Call the Reed Team today at 949-392-6400!