Buying a home is an extremely smart financial decision; it can create equity, credit, pride and responsibility. To buy a home, you will need a down payment. Here are eight tips to help you save money and stick to it.Here is how you get started:
1. Have a goal. Decide how much you want to spend on a home. Print out a picture of your ideal home so you can visualize it daily!
2. Determine your timeframe. Are you looking for a home this year? In five years? In ten years? This will help you plan for how accelerated your savings goal will be each year.
3. Figure out how much you need to save. Meet with a Wisconsin Mortgage Corporation Loan Officer to determine what type of loan you would qualify for and how much down payment you need based on your ideal monthly payment and time frame.
4. Move your money into a safe holding place. Stocks are great when you have money to play with. Now that you are starting to seriously save, consider moving your money into a savings account where there is no chance that you will lose it.
5. Plan what you are going to budget. Take a look at your current budget plan. What items can you eliminate or cut back on to help you save more at a faster rate.
6. Create an automated savings plan. Consider moving a percentage of your paycheck to your savings account each month. This way, the money will be “invisible” to you as you won’t have it in the first place, it will just automatically go into your savings account with no temptation to spend it.
7. Deposit any extra money. Did you get an awesome bonus this year? Or did you receive a tax refund, money from selling personal items or a gift? Instead of spending it on a vacation, deposit it into your savings account.
8. Be flexible. Saving for a down payment is a big venture but life doesn’t stop. If your car breaks down, you need to cover medical bills or other miscellaneous expenses, be ready with an emergency fund or if you end up pulling from your down payment fund, replace it when you can. There is no need to be discouraged, just keep going.
When saving for a home, it is a winning strategy to create a plan and stick to it. Following these eight tips will ensure that you can buy the home of your dreams!