For many Americans, one of the greatest achievements of a lifetime is to own a home. A home is a place where we have the opportunity to grow and prosper. A home is where we will flourish and create cherished memories with loved ones. If you have a dream of purchasing a home this year, your first step will be to connect with one of the trusted Advisors at Seven Gables to help navigate the process. To make your experience more enjoyable, we have included some tips on setting yourself up for home buying success!
When making the heavy decision to purchase a home, you decide on key factors that will influence your lifestyle in the long run. There are many decisions that must be taken into consideration such as which area you want to live in, possible school districts, the work commute, and most importantly how much you can truly afford. These decisions are not to be taken lightly and it is essential to understand the process of purchasing a home and how your budget will greatly affect the transaction.
Prior to starting the process to purchase a home, you must first apply for a mortgage. Lenders will analyze many of your financial records including your credit history. Their goal is to find out how well you have been able to minimize past debts and make loan payments on time. It is also recommended by financial planners to spend at the most 25% of your monthly budget on housing.
After deciding how much you are willing to spend on a monthly mortgage, another critical step is deciding your down payment amount. Saving for a down payment might seem to be a daunting task, but starting small and consistent will go a long way. Automatically sending a portion of your paycheck into a separate account for a house fund will be the jumpstart you need to begin. With compounding interest contributing to the investment, your automatic deposits will add up and before you know it, you will have enough for a down payment.
Saving will take time, but experts recommend to start practicing living on a budget now in order to ensure financial freedom and success in the future. Putting extra money towards your down payment will help to accelerate your goal to become a homeowner. Maintaining a consistent budget will allow you to save for a down payment while also helping to improve your overall debt ratio.
Let’s make the dream of homeownership a reality this year, by aligning your goals with your budget. Connect with a trusted Advisor today to start the process of becoming a homeowner!