Are you tired of renting? Want to buy your own house?
You are not the only one going through this. The struggle is real when it comes to buying a home.
This market does not treat us well. All the efforts that we put in looking for good house are unrecognized. A piece of land to call it ours brings real tough fight with it.
You are ready to put all those efforts to buy a house. To own a house you can have done every possible thing. However, have saved enough money? Do you have money to make a down payment? How will you save for such expensive houses?
We understand your problem. Saving up for a new home is tough but it is possible.
How To Save Money For A House
1. Ascertain Your Need
You will at least 20% of your of the total cost of the house for down payment. There are end number of banks now which offer a loan at low rate of interest- 3% including down payment.
FHA loans, VA loans and USDA loans are mortgages backed by government. For this you might not need a down payment at all. Always consult a loan officer before taking a loan.
Know how much you can afford and how much down payment is required in that budget. This will help you in planning your budget. And how much you need to save.
2. Keep A Check On Your Expenses
You must list down your expenses. Any expense other than a necessity is a waste. Try to use cash instead of using cards. This helps you in having a hold on your money.
Read More: Exactly how much money you need to buy a house?
Buy your grocery in bulk. Don’t visit shops very frequently. Try to take a 30 day challenge where you need t survive with what you have in house.
Cut off all the unnecessary connections- phone, cable, subscriptions and memberships. Understand your need and spend likewise.
3. Clear All Your Debts
Before you start saving for your house it is necessary to clear off as much as bills you can. Clear your loans and dues as well.
Having too many debts in your list can even make you ineligible for a house loan. Make sure you are not in the bad debts list of any one. If it is so then get it clear instantly. This also lower downs your credit score.
4. Put A Hold On Other Savings
You might have plans to save for other things- retirement, car, and education. However, for some time you put all such savings transfer on hold. Do it only if those are not very important.
By putting a hold on your other savings, you can save quickly for your house.
5. Make Use Of Technology For Quick Saving
You can always go for automated bill payments. Banks have such provision where your bills are paid instantly from your bank account.
You can also transfer some percentage of your income directly into your savings account. This is done in the beginning of the month so that you have limited amount to spend on.
6. Try To Save From Other Sources
The best way for you to earn is find another job in your free time. Find a place where you can work overtime. You can spend your weekends in providing services to others as a house help or gardener.
You can also earn by asking for gifts from your relatives on special eves – birthdays or Christmas eves.
Investment is another great source from where you can make huge money. You need to have a good idea of the market.
How Much Money Do You Need To Buy A House ?
Knowing the exact amount of money to buy a new house has always been daunting. If you own a house, then it saves your rent and helps you in building equity.
For buying your own property, you should have around 25% of the home’s price in cash to cover your down payment at least.
How Long Does It Take To Buy A House ?
It takes around 6 months to purchase a new home. Most buyers expect this much period. Everything takes time in this process.
Usually 1 week is taken for mortgage pre approval, then 3 months o look out for a good property. In addition, it may take 1 to 2 months in negotiation to final purchase of the house.
Save Money For A House In 6 Months
You can save money in 6 months quickly for new house. The foremost thing to do is to create the list of your basic expenses. And try to avoid useless expenses.
Best Ways To Save Money When Building A House
Looking for the best ways to save money while building a house?
To save money when you are building a house is to negotiate the price of the house with the vendors. Try to get more than one quotation for the same kind of house. You should keep in mind the location before making the purchase. This helps in saving money while building a house.
CONCLUSION
Planning to buy a new house, have minimum of 25% of cash with you. Take enough time, then come to any decision. Do not rush in choosing anything.
Educate yourself first about the whole buying procedure. It is important to have a brief detail about the steps taken before buying a new property.
Work on your credit score, and try to make it an ideal score. When you apply for loan credit score will play an important role.
