As real estate agents, we’ve seen so many people struggle to save for a house, not because they aren’t invested, but because they just don’t know how.
Here’s a step-by-step guide to kickstart your journey to homeownership. Don’t forget to save this post for future reference!
01) Understand Your Financial Standpoint
Use budgeting apps like Mint or ‘You Need a Budget’ to track your income and expenses. Determine what you can afford to set aside for your housing expenses each month. A helpful guideline is the 28/36 rule – no more than 28% of your monthly income should go to housing costs, and total debt payments shouldn’t exceed 36% of your income.
02) Save for a Down Payment
Open a high-yield savings account and set up automatic monthly transfers to start building your ‘house fund.’ Consistent, automatic contributions are the secret to growing this fund. As of July 2023, some high-yield savings accounts offer nearly 5% interest rates, but remember rates can vary.
03) Practice Good Credit Hygiene
Maintain a credit utilization ratio of less than 30% of your credit limit, pay your bills on time, and work towards reducing or consolidating high-interest debt. These practices can improve your credit score, which can lead to better mortgage rates.
04) Research Mortgage Programs
Explore loan programs that offer lower or zero down payments. Various federal, state, and local programs can help first-time homebuyers get favorable mortgage terms.
Tip: I can help get you connected with a trusted mortgage lender. Send me a message!
Ready to take the next step? Comment ‘READY’ and we’ll message you the link to our comprehensive buyer guide for in-depth insights and strategies to make your home buying journey smoother.
Remember, the path to homeownership is a marathon, not a sprint – save this post, and take it one step at a time.
“Bringing You Home to the Good Life”
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