Monday September 21, 2020
While it’s an exciting time in your life, it’s also quite an intimidating one. Getting more comfortable during the homebuying journey is possible with knowledge. We’re going to discuss some key ways to better prepare yourself to deal with terms like “pre-approval” and “mortgage calculations.” Need to save money for your down payment? We’ve got that covered here, too!
Start Saving Today
A down payment won’t manifest overnight. It’s up to you to take charge of your financial health before buying a home, and these money-saving apps can help you hit your savings goals and establish an emergency fund.
- Digit: Hit savings goals much easier with Digit on your side. This handy app helps you determine exactly how much your budget allows for savings, and it calculates how long it will take to reach your goal.
- Stash: Stash is all about investing your current savings and using its innovative tools to transform investing into a wholly passive way to make money.
Delay Major Purchases
Do you want a new car, a nice vacation… or your own home? Those funds are better put toward the down payment on your home, and other large purchases could negatively impact your credit score.
Pay Off Debts
This is why major purchases are a no-no right now. Excessive debts could come between you and mortgage viability. Pay down debts as much as possible.
Know What You Can Spend
Use that aforementioned app to learn how much home you can really afford without straining the budget too far. Don’t get excited and invest in a home outside of your means, or you could be out thousands and lose the property.
Credit Score Knowledge
Always know your credit score. If it’s below 800, you might need to make repair attempts or pay down balances before buying a home.
Cut Back on Unnecessary Luxuries
If you have premium cable, a rarely used gym membership or eat out a lot, consider canceling or cutting back on services. Calculate how much they cost, and think about how much you could save toward a down payment.
Ramp Up Your Financials
Ask for a raise at your current job or get a second job if you can. Put additional funds such a tax refunds or bonuses into your home savings fund, and you’ll be a bit closer to realizing your buying goals.
Ready to Move Forward and Buy That First Home?
At Landmark 24, we enjoy helping first-time buyers get into their own home. Take a look at our amazing move-in ready homes that will further ease your buying experience. Let us make your dreams a reality!