Purchasing a new home is a dream for most people, but saving to achieve the “American Dream” isn’t really quite as rosy as the picture of perfection most have set in their minds starting out. It can be hard to save the money it takes for a sufficient down payment on a home.
The bottom line is that you won’t get anywhere until you start making moves. If you’re not sure where to begin saving for your new home, take a second to read through some helpful tips to bring you closer to achieving your goal.
You will need at least twenty percent
To make sure you’re covered on a down payment for your new home, you need to save at least 20 percent of the cost of the property. Obtaining a home loan will be different for everyone, as it is highly dependant upon that individual’s financial history, standing, etc.
Saving at least 20 percent of the total price of the property you want will assure that you have enough to cover the initial costs of purchasing a home. Use this number to decide just how much home you can truly afford.
Other costs of purchasing a home
There are more costs to consider when purchasing a home than just the initial down payment. Considering the whole cost of buying a house will help put you in a more comfortable position financially speaking.
Closing costs can run from two to five percent of the total mortgage of a home. You will also need to consider appraisal and inspection fees, which run around $300 a piece.
Setup a special savings fund
Create a formal savings fund for your new home, so the money delegated to go towards this goal is safely stored. When the money is in a savings account, you can also draw interest on the total. It may not be much, but every penny gets you closer to your ultimate goal.
Wrangle your debt before you buy
Before you ever start the process of purchasing new build homes East Sussex, you want to become intimate with your financial history/credit rating. If you have a low credit score, it will be difficult to get approved for a home loan. You may need to take a couple of years to work on your credit before you begin saving for a down payment on your new home.
Consider picking up a side hustle
When the goal is to save money, making more money always helps. Consider picking up a side hustle to add to the savings fund you have built for your future. Remote positions are more prevalent than ever before meaning you can pick up a job online that won’t require you to drive to an office.
