Everyone wants a smooth, successful home buying experience, whether it’s their first house or fourth. Here are some habits of successful homebuyers that, if followed, can help anyone land the perfect place to call home.
● Separate Savings from Checking.
Open an individual home savings account with the sole purpose of building up a down payment. Talk to a loan officer to find out what amount this should be. Everyone is different and there are different programs out there. The myth of 20% down or 10% down is that, a myth! If anyone wants to get serious about saving money, it’s always best to set savings aside before little incidentals gobble up everything. Take out, pedicures, manicures, car washes, and shopping trips can easily chip away at the monthly goal amount. With a separate account for your future home, it will be hard to justify withdrawing money for unnecessary expenses.
● Stop Splurging.
The morning latte, salon trips, car detailing, and weekend trips to the mall add up quickly. To achieve the savings needed for a down payment on a home, choose one or two spending habits to cut out. Having a solid down payment will be well worth the belt-tightening.
● Know the Numbers.
Successful homebuyers go into the purchasing experience knowing their credit scores and their monthly bills like the back of their hands. Don’t let a car payment or student loan payment get in the way of home ownership by forgetting to account for it. Sit down and comb through all monthly bills to ensure enough income is left over for the expenses of home ownership – mortgage payment, home insurance, property taxes, etc. Talk to your Skylight Realty Group REALTOR to learn more on what the typical home ownership expenses are. Being well informed is key.
● Take a Test Run.
Take a month or two to practice home ownership budgets. Set aside the anticipated mortgage amount, as well as utilities and a reasonable budget for routine maintenance and upkeep. Don’t forget the little things like property taxes (if they aren’t part of your monthly payment already) or landscaping that tag along with home buying and can put unprepared buyers in the red.
The key is to be informed! Getting into these habits will ensure a home purchase is not only attainable, but also successful and smooth. Have questions on these habits or on the next step? We have preferred lenders we work well with and who are ready to answer all financing questions. #TrustUs to guide the way.