Buying a home takes mental and financially stability. You need your bank account to be ready as well as your mind as you go through all the steps in the home buying process. Here’s how you can prepare both simultaneously.
Cut Back on Indulgences– Getting rid of some of your indulgence habits such as eating out multiple times a week. This will help you save more money for your home.
The only way you can cut back is by working on your self-control, a mental habit to master! You may not think eating out twice a week is eating away at your money, but meals can quickly add up. Spending $50 a week to eat could cost you $200 a month that
you could be adding to your savings! And that’s only ONE indulgent habit you’re cutting back on, think of all the others?!
Make a Savings Account Specifically for Your Down Payment– You will eliminate all confusion and temptation when you open an account specifically for your down payment.
You can tap into your other accounts for daily expenditures, but your down payment should not be used until you find the home you want. This will also make it easier to track how much money you have saved for a home purchase alone.
Go Through a Trial Run– Are you able to handle the monthly costs associated with homeownership? The best way to find out is by going through a three-month trial period.
Add up all the costs you would be paying if you owned a home (mortgage, utility bills, maintenance costs, etc.) and for three months set aside that estimated amount of money. Are you able to save enough each month to pay all those bills? If you are cutting
it close, you need to reconsider the price range of your future home or the time frame in which you will buy it.