Want to buy a house? Goals are great, and we have people that live to help you reach them! Depending on the amount of home you wish to buy, taking steps towards homeownership typically entails having a stash of savings set aside for the cause.
Mortgage Loan Officer Sid Dailey (NMLS# 402514) has some insights:
Keep it real. Align your home buying goals with a dose of reality – what neighborhood do you want to live in? How much home can you afford? A good dose of reality and willingness to work on your wish list is the first step in establishing that homebuying goal you can work toward.
“I am real with members interested in homebuying, and I ask them to do the same for themselves for the sake of their own financial wellness. I’m passionate about putting people in homes they can afford and thrive in, financially,” says Mortgage Loan Officer Sid Dailey.
Set a savings schedule. Find out how much you can set aside monthly to go towards a down payment and closing costs, start doing it, and stick to it.
Cut out extras. Examine the more extraneous areas of your budget to see where you can squeeze out extra savings – like entertainment and dining out. Keep in mind: the power isn’t only in the down payment, as credit score, debt-to-income ratio and other things factor into you buying power.
“When I work with people to help them move closer to homebuying, I try to point them toward paying off small debts that may affect buying power and boost their credit scores,” Sid says.
Consult an expert. Your savings goals may not be as much as you think. The only real way to know is to consult a mortgage loan expert and explore your mortgage product options.
“Many members are surprised to learn they qualify for government-subsidized loan products or that some conventional loans can mean putting only five percent down with eligibility. It comes down to being able to have realistic conversations about your goals and how to reach to them,” says Sid.
Sources: http://www.quickanddirtytips.com/money-finance/real-estate/buying-a-home-best-ways-to-save-your-down-payment?page=1, https://www.forbes.com/sites/brandonturner/2016/09/06/how-to-save-for-a-real-estate-down-payment-20-financial-experts-share-their-top-tips/#541f710f3dd7