There are a few steps to take to home ownership.
I will try and detail some of the steps in these home ownership tips. Having some experience at this, we’ve bought and sold 5 homes and it gets easier each time you do it.
I won’t say I’m an expert, but I can offer some tips for those who are trying to obtain home ownership.
PART 1 Saving to Buy a Home:
Save for a down payment.
This is the hardest part and takes the longest out of all the steps to home ownership.
1.Prioritize your Spending Habits – This might mean changing the way you do things. Do you eat out all the time? Is there something you spend a lot of money on all the time? Clothing, hobbies, vacations, vehicles. Make a list. Look at each item, see where you are spending and where you can possibly cut back. Be reasonable, and try and make some positive changes. A little here and there can add up to big savings, just like when shopping for groceries. It all adds up.
2. Vehicle Expenses – Are you a 2 car family/couple? Getting rid of 1 car will save you between $6,000 and $9,000 a year which will help with your down payment. See if there’s a way you can afford to do this. Putting that extra money away to save for a home will help tremendously if you can do this.
3. Rent Costs – Are you currently renting? Finding something cheaper, maybe even living with family members while you save for your down payment will help tremendously. Renting takes a big chunk of your income, and finding cheaper ways to rent, or live with others will help you save. If you can do this, it will help a lot.
4. Grocery Expenses – Groceries are a big chunk and if you’re already following the group you are saving a lot more than you did before couponing and price matching. Put any extra savings into a savings account for your down payment.
5. Credit Cards – Pay off your credit card debt. If you try to apply for a mortgage with too much consumer debt, you won’t qualify. For most people to qualify for the house that they want, they usually have to pay down their credit card debts first. This is a hard thing to do, but work on one card at a time, while paying the minimum on any other cards. After you pay off one, tackle the next one.
6. Set Goals – Make a plan, and try your best to stick with it. We know things happen, emergencies, etc., but if you try to remain vigilant with your saving and spending habits, you’ll find you start doing much better than you used to before planning.
Next Home Ownership Tip: Requirements for Buying a Home – What you need to do to prepare to buy a home.