How to Save Today to Buy your Future Home
When it comes to saving for a home, you should start as soon as possible. Most people are aware that buying a home is one of the most expensive purchases in our lives, but many first-time buyers underestimate the amount of cash they actually need to purchase their dream home.
Understand the Costs:
One of the most important home buying costs is the down payment. Buyers can expect around 5% or 20+% of the purchase price on a down payment. If this sounds like a lot, there is a standard rate for an FHA loan at 3.5% of the purchase price, but FHA loans may be difficult to obtain.
In addition to paying the down payment, there are closing costs required to complete the sale. These costs vary greatly because of differences in state and local regulations and taxes but they typically range from 2% and 5% of the home’s value.
And moving expenses can easily sneak up on you, so don’t forget to find a friend with a truck, or book a moving company to assist with the work.
Build a Better Budget:
The obvious first step to saving money is budgeting better. If you don’t know where to start, write down transactions on your bank statements and your credit card payments. Make charts of where you are spending the money most – food, entertainment, utilities, etc. Next, consider what is essential and what isn’t. By categorizing and prioritizing your expenses, you can build a better budget and stick to it. Watch your money grow, money that you can put towards your house.
If you want to save for a house, you should create a plan – especially if you are a first time homebuyer. First, make sure you know how much you need for the down payment and go from there. There are many tips for saving money, and plenty of ways you can budget for your down payment. If you are ready to take the steps you need to save for a home, contact Galaxy Lending Group.