Saving for a New Home is Not Impossible by Pamela S Thibodeaux (c) 2018* Many people today want to own their home, yet feel saving for such a large purchase seems impossible.
One of the first priorities on getting ready to buy a home is to be pre-approved. Talk with a mortgage broker and see exactly where you stand credit wise. These folks are experts in their field and know how to guide you when it comes to the right credit score, how much borrowing power you’d have and what your down payment and closing costs would total. They can also estimate interest rates, monthly payments, etc. Even if you’re looking to buy in the future, it’s never too early to get some numbers together and start preparing and saving.
Next would be to set up a budget and save for those costs mentioned above.
One lender I spoke to said the best advice she gives her clients in regards to saving for the home they want, is to start pretending they have a house note immediately so that they’ll “feel” how the payment will affect their monthly budget. How can you do this? Write that check out every month and put it in the savings account you’ve opened specifically to save for your home.
Whether it takes you months or a year or two, all extra funds (raises, bonuses, tax refunds, monetary gifts received, money left over at the end of the month, etc.) should go into your special savings account labeled HOME. One young woman did this and put aside ten grand in a few years.
Compare banks, credit unions and online banks to see which kind of account will pay you the most interest on your savings. Watch for hidden fees or early withdrawal penalties.
Have an IRA? Using funds from your IRA can mean taxes and penalties–unless it’s to buy a home. IRS rules change so be sure to ask if this is a possible option for you.
While setting up that budget, add in ways to pay off existing debt then as one bill is eliminated, double up on other bills OR sock that payment into your savings account.
Here are some other credits and/or special financing you may qualify for…
*First Time Home Buyer – many finance companies give special rates and discounts for first time home owners.
*Rural Development Financing – depending on where your dream home is located, the house itself may be eligible for special funding which means better rates and sometimes even 100% financing for the buyer.
*HGTV fan? Many times you can purchase a fixer-upper for far less than a ready-to-move-into home and save hundreds, perhaps thousands of dollars in the meantime.
*Foreclosures and Sheriff Sales. People have found incredible deals on homes by checking into these options.
These are a few practical ways to save to purchase your dream home and many people start out with a firm plan but eventually get off track or run out of steam because it seems to take so long. Here are a couple of fun and creative ways to keep your dream alive and motivation high…
Create a Vision Board – find and cut out pictures of your home, room décor, furniture, etc. and pin them to a cork board hung in a visible place to remind you of your goal.
Find or make a bank in the shape of a house. Empty your pockets and purses of spare change daily and put that into the bank. Use a coupon, save at a sale, or use a Wal-Mart Savings Catcher? Add the value (in cash) of what you save in each of these instances to your savings. Saving takes determination and dedication but owning your own home is not an impossible dream.
*Original article published in April 2018 issue of Thrive Magazine, Lake Charles, LA Award-winning author, Pamela S. Thibodeaux is the Co-Founder and a lifetime member of Bayou Writers Group in Lake Charles, Louisiana. She has over twenty years experience in bookkeeping, insurance and tax preparation. Multi-published in romantic fiction as well as creative non-fiction, her writing has been tagged as, “Inspirational with an Edge!” ™ and reviewed as “steamier and grittier than the typical Christian novel without decreasing the message.”
*One-Time Digital Reprint Rights Available for $5.00 through PayPal. Byline must stay intact. Link back to Article and Bio greatly appreciated!