3 Tips for Making Your Dream of Buying a Home Come True
#1 Automate Your Down Payment
The Down payment is one of the biggest barriers to home ownership. Jumpstart your savings by automatically having a small amount of your paycheck be transferred into a separate savings account or “house fund”
Down payment takes discipline & perseverance, but setting up automatic savings can make it easier. If you never see the cash, you won’t spend it.
#2 Build Your Credit History and Keep it Clean
When you apply for a mortgage, lenders will want to see that you have been able to pay off past debts. This means staying on top of paying your student loans, credit cards, and car loans on time!
Credit bureaus recommend using no more than 32% of the credit available to you.
#3 Practice Living on a Budget
Downsizing your spending now will allow you to save more for a down payment and pay down other debts to improve your credit score. “95% of first time home buyers are willing to make sacrifices to buy their home faster”
The top 3 sacrifices are “New Clothes” “New Car” and “Traveling”
- Setting up an automatic savings plan that saves a small amount of every check is one of the best ways to save without thinking too much about it.
- Living within a budget right now will help you save money for down payments while also paying down other debts that might be holding you back.
- What are you willing to cut back on to make your dreams of homeownership a reality?