The Hunte Group Realtors®


Posted by The Hunte Group Realtors® on 2/13/2018

One of the first and most important things that you should do when you buy a home is to be sure that you’re on top of your finances. Before you even begin the home search, you’ll need to be sure that you have money in the bank and know your credit score. What you really need is a plan. 


Set Up A Savings Account For Your Future Home


Having a separate account set up just to help you save for your down payment and other home costs can be very helpful. Find a bank with a bit of a higher interest rate. Often, online banks are your best bet. If you’re able, set up automatic transfers from one account to another for a set amount each month. You’ll be saving before you know it! 


Set Goals


If you have no idea of what you want, it will be difficult to understand what you need to do to get there. Typically, it’s a good idea to have 20% of a home’s purchase price saved for your down payment. Putting 20% down also helps you to avoid the additional cost of PMI, also known as private mortgage insurance. Once you have a goal, don’t look at the big picture. Break down your big goal for savings into smaller bits to make it less overwhelming. 


Make Savings Automatic


We’ve already mentioned the idea of setting up an automatic transfer, but you can do even more. When you are gifted money, instead of spending it, put it in your home savings account. If you get a bonus from work, save it. If you get a raise, live off of your previous income and use the additional income for savings. All of these little actions add up fast. When you make savings habit, it’s easier to reach your goals. 


See Where You Can Cut Costs


There’s probably plenty of places that you can cut costs in your budget. Sit down and see how much your expenses actually are compared to how much you actually do spend. Can you opt out of cable TV? Maybe you can reduce the speed of your internet connection, or find a cheaper cell phone plan. If you take a close look at your expenses, there’s probably plenty of ways for you to  cut back and save.


Sell Your Stuff


We’re not talking about selling your essentials, but if you have things around your home that you’re not using, there’s a better use for them. You can probably get some extra cash for these items by selling them. It’s so simple to sell things on the Internet these days that you can make some money and get rid of unwanted things pretty easily.  


Focus

With a bit of focus, hard work and diligence, you can save up enough money for a down payment on a home. Don’t forget to keep all of the other aspects of your financial life in order such as paying your bills on time and not opening new credit accounts. Good luck with your savings goals!





Posted by The Hunte Group Realtors® on 1/9/2018

One of the biggest hurdles in becoming a homeowner is that of saving for a down payment. In today’s world, it’s hard for anyone to save sizable amounts of money due to the extreme cost of living in most areas. With less income and higher expenses, many people have less of an opportunity to save money.


Saving Isn’t Impossible


Many homebuyers are first-time homebuyers. While many simply dream of owning a home, others work to make it happen. Saving money is a goal. Once you save the money, you have made a real accomplishment. You’ll have a huge reward waiting for you once you reach your goal. How can you save effectively? There’s a few simple steps that will allow you to start saving for a down payment on a home. Remember that no matter how slow you go, every step is one step closer to hitting your goals. 


Get A Savings Account


Preferably, the savings account that you open should be dedicated to your house expenses. Most of the time, your bank will allow you to set up automatic transfers from your checking account. See how much you can afford to save and set up these transfers. Each time you get a paycheck from work, have a certain amount put right into the savings account. You’ll be saving without even thinking about it.


Be Budget Friendly


Budgeting sounds complicated, but really, it’s quite simple. First, put your monthly gross income on a spreadsheet. Then subtract things like taxes and fees that come out of your paycheck. Next, subtract all of your necessary monthly costs. These can include student loan debt, car loans, rent, and how much money you spend on food and entertainment. There's so many little things that we spend our money on everyday, you may be surprised to see how much you’re spending and what you’re spending it on. Some categories are important and others are not.       


See Where You Can Cut Costs


After you have made a concrete budget, see where you can cut some costs. If you need to cut out going to dinner and the movies, then do that. There’s bound to be something that you can cut out of your budget that’s not a necessity that can help you to save some cash. The sacrifice will be worth it in the end!       


Indulge For Your House


Every time that you get a small bonus, a gift, or a tax refund, put it away. It can be tempting to want to go buy a brand new TV or spend your money on entertainment, but saving that money for your house fund will be a lot more rewarding. 

The bottom line is that it won’t be a huge task saving your money for a down payment once you put your mind to it. Happy saving!