Are you wondering how to start saving for a house? Let me give you five tips to
get started today!
Hey! I'm Lindsay, a proud Anthem resident and your local REALTOR® with the Wise
Move AZ Team at Realty ONE Group. If you want to stay up to date on all things
Anthem and real estate, then you need to hit that subscribe button!
Pro Tip: You're also going to want to hit the little bell icon, so that you're the
first to know when our new videos are posted every single Thursday! As your
Anthem, Arizona REALTOR® I love working hand in hand with families every single
day to make homeownership a reality for them. I also know firsthand, the hard work
these families are doing behind the scenes to save the money needed to
achieve that goal. In the current market, it's quite possible that your mortgage
payment would be less than your monthly rent. This is great, because it means that
you have the monthly income to sustain the mortgage. Unfortunately, that's not
enough! You also need enough money for the down payment, closing costs, and the
ongoing expenses of maintaining a home. This is the piece that can be very
daunting for people; but don't worry! In today's video, I'm going to give you five
tips that you can put into play today to start saving. #1: Set your Goal.
I'm sure we've all heard that goals are more achievable when they're specific,
and I completely agree! In my opinion, the best place to start is by figuring out
how much money you need to purchase a home. Now, this doesn't have to be
accurate down to the pennies, but by having a rough idea you'll be able to
focus and see your progress. Even if you're years away from buying a home, I
recommend that you sit down with a Lender, a REALTOR®, or both to discuss your options.
Between the two of them, they'll be able to educate you on the types of loans you
may qualify for and the price point of homes that suit your needs.
While I would love to see everybody bring 20% down, I know that's not always
reasonable. It's important that you understand how the amount of your down
payment impacts the cost of your loan. In an ideal world, you want to be spending
25% or less of your after-tax income on your mortgage payment, HOA assessments,
insurance, and taxes. You'll also need to save enough money
for closing costs. We have a whole video on closing costs for buyers that I'll
link to in the cards for this video, so feel free to check that out.
Now that you have that number, you need to consider when you would like to buy a
home. Using the amount of money you need, and the amount of time you have, set
monthly or weekly savings goals, depending on what makes most sense for
your schedule. #2: Open a Savings Account. I encourage you to open a
savings account, specifically for your future home right now! It's a place where
you can squirrel away money to buy the house. In the future, you can use it to
set aside money for mortgage payments and maintenance costs. The reason for
setting up a separate savings account is twofold. First, you get the joy and
satisfaction of seeing it grow. Second, you'll be less likely to spend it on
something else. You may want to see if you can set it up as an interest-bearing
account. Every little bit helps! Also, I recommend, if possible, you set up
automatic deposits into this account on payday. #3: Look for Cost
Savings. If you don't already have a budget or record of your spending, build
one. Take note of where your money goes every month. Is there an area you could
cut back? For example, if you have a gym membership you don't use, a subscription
you should have cancelled months ago, or unnecessary
spending on fast-food, deal with them now. You can commit to setting that money
aside in your home fund with minimal discomfort. Now, I don't want you to go
without in any dramatic way. Saving for a house is stressful, but you should still
be enjoying your life in the meantime. It doesn't mean that you can't go out for
dinner with friends or that you can't buy tickets to that concert you've been
waiting to see for years. The goal is to be aware of your spending habits and cut
back where possible. #4: Generate Additional Income. I'm sure this one
sounds super obvious! Of course the best way to save for a house is to make more
money! Trust me, I know it's easier said than done, but here are some ideas on how
you might be able to make a little extra money without over exerting yourself.
Could you ask for a raise? If you're in a position to ask for a raise at your
current job this can be a great option. If you can't have a raise, could you
offer to work overtime to make a little more money? You can also sell things that
you no longer want or need. This can be quick cash in your savings account. You
could find a side hustle that aligns with your interests, or you could ask for
money in lieu of gifts. Your friends and family may ask what you want around
holidays and birthdays. If you let them know that you're diligently saving to
buy a house and would love to have them contribute to that and lieu of a gift,
they may oblige! Regardless of what you decide, it's so important that you
maintain balance during this time. Don't overdo it.
#5: Stay Focused and Be Flexible. In very little time, you'll start to see
that savings account creep up, and up, and up. You should be so proud of yourself!
It's also at this time that people decide they've worked so hard, they
should take that vacation to Europe! Be careful!
Never lose sight of why you started this savings project in the first place. It's
okay to change your plans, but don't do something
that you'll instantly regret. On the other hand, don't become so fixated on
saving for the house that you're sacrificing things you shouldn't. For
example, if your car needs a new windshield because you took a rock, but
you know that this will throw your savings off for the month, don't panic!
Life is bound to get in the way sometimes. Do what you need to do and
then refocus. You can do this! So, there you have it! What are you going to do to
set aside money for your future home? I would love to hear which of these items
you're planning to put into action first. Let me know in the comments! If there's
anything we can do to help guide you on the path to home ownership send us an
email at Team@WiseMoveAZ.com. Lastly, if you enjoyed this video let me
know by hitting that like button, subscribing to our Channel, and sharing
this video with your friends! See YOU next Thursday!