If you are renting right now and feel like you’ll never be able to stop throwing money away every month, now is the time to break the cycle. Make today the day you begin to think about your long-term goals and how home ownership can be possible for you. There’s probably no larger purchase you’ll make in your life than a home. That means it’ll more than likely take you a little while to get there. That is okay! Follow a few steps and the money will be there before you know it.
#1 Manage Your Debt
First things first, in order to be approved for a home loan, you need to get your debt in check. That doesn’t necessarily mean you need to be debt free, but your debt to income ratio is one of the major factors lenders look at when deciding whether to give you the money for your desired house or not. That typically means you need to pay down your debt, well above your minimum required monthly payments, before you can start even thinking about a house.
#2 Open a Separate Savings Account for Your Needed Funds
It’s best to keep the money you need for a downpayment in a totally separate account. This will stop you from splurging and using it on other purchases. There are plenty of savings accounts out there to choose from, and the bank you already use for your debit account probably offers one. As long as the company is reputable and the included tools will help you reach your goal, you don’t need to overthink which savings account to open. The important part is having a separate account to record your progress toward your savings goals, and putting money into it on a regular basis.
#3 Do the Math
It can be overwhelming to think about the amount of money you’ll need for a big expense, like making a down payment on your first home. A great place to start is calculating how much you’ll need to save each month to meet your goal. For example, let’s say you’re planning to move by the end of this lease in 10 months and you want have $5,000 saved up to put down on your loan. $5,000 divided by 10 months comes out to $500 per month. That probably sounds like a lot of money, and that’s because it is! It may not be feasible this year, but if you stick with it, it will be eventually.
Are you ready to get out of renting and get into a better financial situation? There’s no shortcut to saving for a house. It takes time, effort and patience- but it’s worth it. Owning a home in Fort Myers, Cape Coral, Naples, Bonita Springs, Fort Myers Beach, or anywhere else in Southwest Florida is a wonderful investment in your future happiness. The Beattie Realty Team can help you find one that best fits you, once you are ready. There are many communities and home options in Southwest Florida to choose from and we’d love to be the one showing you around. If you can’t find the perfect one already on the market, we’ll help you build a custom home instead! Contact us today by calling (239) 994-6187 or email@example.com to get started on your home buying journey.