Are you planning to buy the home of your dreams? Most people say that a home is likely the largest and hardest single purchase they'll make. From the down payment, maintenance, emergencies to closing costs, it may take years to save up.
It may feel impossible to save up enough to buy a home. But with a concrete plan and motivation to accomplish your financial goals, you can start living in your dream home.
We've put up the best tips for how to save for a home.
1.Determine how much you need - You will probably need 3.5% - 20% for your down payment. Some aim to put down 20% because that will lower the interest and PMI. It is better to speak with a mortgage loan officer to identify the loans you may be qualified for
2.Pay off your credit card debt - Get your accounts in order. It may be difficult to get your mortgage approved if you have a debt load. Try your hardest to pay it off or at least reduce it.
3.Move into a cheaper place/Downgrade your car - If you are renting now, make sure that you still have enough room in your budget to contribute to your savings. If you are not able to do that every month, you may want to consider moving into a less expensive rental when your lease is up for renewal. The same for your car. If your car payment takes up a big chunk of your budget you may want to consider downgrading temporarily to help you save money for your new home.
4.Put a stop to the luxuries and bad habits - If you are someone who likes to go on vacations and enjoys regularly shopping for clothes, bags, shoes or other luxury items consider reducing your budget line item temporarily and put that extra money into the house fund. Try to stay away from impulse purchases you don’t need – it can save hundreds of dollars.
5.Save less for retirement - This is advisable if you're young, you can put your retirement savings on temporary hold. Put the extra cash into your house fund.
6.Make more money - Are you capable of a part-time job? Or freelance work? There are many opportunities like these that require few qualifications where you can earn cash and save up for your home.
Backyard Realty Group is a full-service real estate brokerage that assists Buyers, Sellers, Investors with their real estate needs by providing exceptional real estate, rental property management and community management services in the Metro Atlanta area.