Buying your first home or upgrading to a bigger home can seem daunting. With the job market improving across the board coupled with a more realistic housing market now could be the perfect time for you to dive back into the real estate market and purchase a new home.
Banks have eased back in to lending money sensibly with some 100% financing loans, like a VA loan, and low down payment mortgages available.
Saving and budgeting are two key players in homeownership, especially for those who are slightly nervous about the initial costs that go into the perfect real estate choice.
We have listed a few ways to increase your savings account to allow you to buy the home of your dreams!
Ah, the beautiful word budget. Many think the word really means “restrictive” but in reality there are hidden fees, extra charges and frivolous expenses in your budget you might not know exist. It helps to break down your yearly budget on a month by month basis. There will be costs associated with your life that are permanent like monthly rent, car payments, health insurance, car insurance, etc. but it doesn’t mean that you can’t cut the fat elsewhere.
Start with your phone bill. Analyze the charges you accrue monthly. Some cell phone carriers will slide small fees in your bill without you even noticing. Put your private investigator pants on and start looking. You will be surprised what you potentially find! The same can be said for cable. If you don’t watch a lot of TV perhaps it is time to make the switch to basic channels and an addition to Netflix or Hulu. You can watch some of your favorite shows just a little delayed.
Create a Savings Account
Go down to your bank and open a new savings account that is dedicated to your house savings only. The money you save from your budgeting can find a home in this account and you can talk to your bank about quarantining those funds until you are ready to put it all toward your home. At work talk to your payroll department about taking out a specific amount of money from auto pay and adding it into your new account.
When tax season rolls around, if you usually get some kind of refund, dump it directly into your new savings account. Even though it might hurt at first, it can make all the difference in your new budget!
Cut The Fat
Do you go out to eat? Make frequent trips to Starbucks? Enjoy lavish vacations?
There will be plenty of time to kick back and put your toes in the sand once your house payments and monthly expenses have been comfortably figured out in your new digs. These major adjustments can make or break your savings account. Make a conscious effort to cook meals at home, create your own fancy coffee at work and settle for a backyard staycation for the time you need to budget.
Do Your Homework
There is no harm in researching the housing market and deciding when the right time to buy is for you.
The internet is a powerful tool, use it to your advantage. Look for market trends in your area first; local markets can be vastly different than national markets, remember that!
If your neighbors are selling their home grab a flyer and compare amenities with the two homes. If you know what area you want to move into do the same for houses that are in the market in those specific neighborhoods. This can give you a clear target range for the amount you need to save and allow you to create your monthly budget accordingly. You can also schedule a free 15 minute phone consultation here.
Make Saving Fun
This might sound cheesy or corny, but a healthy attitude towards saving for your new home can make all the difference.
If you go into budgeting with a nervous attitude you won’t find the same success. Make sure you are truly ready before making such major adjustments to your life.
Saving CAN be fun, it doesn’t have to always be a drag. If you have a hobby you enjoy try banking on that. Make time for tasks that are enjoyable and free. Pick up the book you always wanted to finish instead of going shopping with your best friend.
Organize a neighborhood garage sale instead of buying something new. Above all else, let your friends, family and coworkers know you are saving for your home. Gather support and allow them to rally behind you toward your common goal.
Many of those people will have been in your shoes at one point or another!
Next Steps to Save for a Home in McAllen, TX
When you are thinking about how to save for a home in McAllen, TX remember we are here to help you with a plan so you don’t have to go at alone.