Saving Towards Homeownership
Buying a home is a great achievement. When my husband and I bought our first home I was so elated. I remember pulling up to the garage for months after we closed still in awe that we finally bought a house. We pay our own mortgage, not anyone else’s and there is something wonderful about that. It doesn’t matter what your financial or credit situation is – you CAN be a homeowner! Becoming a homeowner takes sacrifice, planning and patience! If you can remember and put into practice those 3 words: sacrifice, planning and patience…you can get there!
Sacrifice life's luxuries (big and small) to pay off credit card or any current debt and to save for a down payment. For example: shop for necessities only, do your own mani/pedi’s, wash your own hair and go to the salon for routine professional maintenance, cut coupons, bag your lunch, trim down the home amenities (simplify the cable, telephone and cell bills, and eat out less – way less, ok…I'm lying – stop eating out. Remember: the bigger you deposit, the smaller your mortgage payment.
Plan what you spend, how much you spend and what you'll save. Make a budget. Set up automatic savings; I know, I say all the time. I am not affiliated at all with ING, but their online Orange Savings is truly the business.
Patience. Know that if you have a plan of action – you will succeed. This process is not without it's challenges, learn about the process and all that comes with it.
I also want to stress the importance of asking a lot of questions. If you don’t understand – ASK and certainly don't sign anything you don’t understand or agree with. I’m not in the business, but I have purchased numerous homes and know from experience what you will be going through. Anyway, enough of my rantings, you know I love my lists, here you go:
Decide on your long-term goal (e.g. save $10,000 toward the purchase of YOUR home).
Look at your current financial situation; income, bills and credit report.
Make a new and improved budget that reflects your commitment to owning your own home.
Pay down current and old debt.
Review your withholding allowances. Increasing your allowances allow you to keep more of your earnings. Talk with a financial advisor about the best course of action for your situation.
Check with your state or local government for income dependent and/or first-time home buyer programs available. These programs often provide down payment assistance. Be sure that you clearly understand all of the conditions of any help you receive. There may be limitations or penalties.
Now go get you a house! My mom always says, "If you fail to plan, you plan to fail!" Best wishes on your journey.
You got a 2.46% upvote from @minnowvotes courtesy of @hnub!