Did you know that Americans bought so many houses in 2020 that experts are worried about a housing shortage?
If you’re thinking about becoming a first-time homeowner, navigating this hectic real estate market can create a lot of anxiety. The most common concern people have is finding help for budgeting.
Are you on the lookout for different ways you can save up to make this significant purchase? Keep reading for a practical first-time homebuyers budgeting guide.
1. Take a Close Look at Your Expenses
One of the best tips for budgeting is always to stay vigilant when it comes to your expenses. Some people make the mistake of creating a budget once then never revisiting it as their life changes over the years. Saving up for a home can be a long process, so it’s essential to monitor your spending habits and find ways to cut expenses.
Many people downsize, sell things, and scrimp so they can maximize their savings.
2. Consider Cutting Down Your Debt
If you’re trying to save for a down payment, you might think it’s wise to pay less attention to any debt you have. The truth is lenders will evaluate how much debt you have and factor that into how much money they’re willing to give you. This is why it can be productive to allocate more resources to tackling your debt even if your down payment isn’t as large.
3. Shop for the Right Mortgage
Some first-time homebuyers think you have to wait until you find a house to start looking for a mortgage. It’s actually better to shop before your house hunt so you can get pre-approved and have a concrete idea of what your budget is.
If you need budgeting help, you can work with experts like landmark mortgage planners to have peace of mind that your mortgage experience will be as smooth as possible.
4. Open a High-Yield Savings Account
Opening a high-yield savings accounts is an easy way to make your money work harder for you. Instead of earning the traditional 0.06% interest, you can get as much as 3%.
If you need help with budgeting, it’s great to know that many of these accounts let you set up different buckets that make it easier not to touch the money you want to reserve for your home.
5. Think About Picking Up a Side Hustle
If you can spare a little time each week to work extra, even a $100 boost can lead to significant savings. Since there are tons of flexible side hustles that allow you to make your own hours, it’s worth exploring your options. From teaching English online to transcription, you’ll feel great having this money.
A First Home Buyer’s Budgeting Guide
If you follow this budgeting guide, you can ensure that you’ll be able to find the home of your dreams. Navigating the real estate market is stressful no matter how much experience you have, but planning ahead can give you more confidence.
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