Is your goal for the New Year to buy a home? Saving up for a home can be overwhelming at times, but if you have a plan of attack, it is feasible. Here are four tips to help you buy a house in 2018:
Record your expenses.
Be aware of your expenses in order to create a budget for yourself. Keep track of your normal spending habits for a few months to get an idea of how much you typically spend. There are many apps available to track your spending including: BillGuard, LearnVest, Mint and Fudget. There are multiple methods that you can use to record expenses and create a budget. Many people find it helpful to create a spreadsheet on a program like Microsoft Excel where there are multiple pre-made templates ready for you to use.
List your debts.
Write down any incurred debts, along with the interest rate, monthly payment and the number of months until it is paid off. There are two efficient ways to go about this; pay off the smallest debts first or pay off the debts with the highest interest rate first. Be sure to cross a debt off each time you make the final payment – you are one step closer to being debt free!
Set a Goal.
Determine your goal and write it down. Writing down your goal will help ensure that you stay committed to it – in this instance, purchasing your new home! Place it somewhere you can see everyday as a motivational reminder.
Develop a Budget.
Accommodate for everything that you need, and then look at how much you are spending on your wants. If you determine that you are overspending, explore where you can cut back. Ask yourself if you really need that $5 cup of coffee every morning.
These four steps will make creating a budget for your new home easy! If you have any questions regarding homeownership, please contact the Housing Buzz Team!