Buying a home may be a goal that seems unattainable, but it may be easier than you think! Turns out most of us can own a home if we learn how to save and spend properly. See below for some quick pro tips on how to make your home ownership dreams a reality!
Save up now
It may sound like a no brainer, but creating a financial plan can make sure you’re ready when it comes time to purchasing a new home. Best way to stay on track when it comes to saving? Set up automatic transfers to a savings account that’s dedicated solely to a future down payment. The more money down, the more likely you’ll be able to obtain a better interest rate and lower monthly payments.
Keep an eye on your credit.
Poor credit is the #1 reason why people are denied a mortgage. Avoid a low credit score by always paying bills on time and keeping balances below 30% of your limit. Don’t have any credit history? Build a score by having at least one credit card open for six months.
New construction may be the best route.
If you’re comfortable with purchasing into a new development and are able to get in on the ground floor, you may have a huge advantage on your hands. Some new developments are known to raise prices eight times by year two! Homes start out at a certain price point and if you’re in the first 15-30% of purchasers, you may find a great deal and save big on closing costs.
If you choose to rent, be aware of what the owner intends to do with the space. If they’re wanting to eventually sell and you’re an interested buyer, know that you may be able to negotiate a lower price if you’ve built rapport. Renting in a building that could also become conversion properties may also give you the insider rate on your future condominium.
Be a trendsetter.
If you’re flexible in terms of location, look for a neighborhood that is up-and-coming or going through transformations. Do your research and be sure to work with a real estate agent who is knowledgable of all neighborhoods & local trends. If you’ve done your due diligence, you can find yourself in a prime area and see your investment increase by 10% or more!