How To Afford A House: 6 Tips To Get You In A HomeThe plunge of housing prices recently may be bad for sellers, but it's a big boon for buyers. Houses are now so inexpensive, consumers who were facing years of renting before the crash in the hopes of saving enough for a home someday far in the future are realizing that they are able to buy a house now. Others may not be quite ready, but are eager to take advantage of the rock bottom housing prices before they start to rise again. Lender 411 has put together some tips on how to afford a house in order to get you into your dream home fast. Simple and easy, these steps will have you ready to start shopping before you know it! 1. Open a targeted account. Opening a savings account specifically for a house is a great first step. Watching the amount grow is a big motivator for many people. Shop around and compare banks to find an account with a high return, whether it’s a high yield savings or a money market account. Certificates of deposit can also be beneficial, especially if you have a significant period of time before you begin to shop. 2. Make small changes. Keep a journal with you for a period of time, whether a week or a month, and jot down all your purchases. At the end of the period, read back through your entries and analyze them. What can you do without? Do you really need a weekly manicure, or an expensive lunch out? Instead of spending money on what you target as trivial expenses, set it aside as an amount to go into your savings. You’ll likely be surprised both by how quickly it adds up and by how easy it can be to let these things go. 3. Regift financial presents. A great way to get closer to your goal of buying a house is to take any financial presents you receive from friends and family and regift them--to your savings account! Not only will your account grow faster, but your friends and family will have helped you get to the best present of all: your own home. 4. Consider moonlighting. Taking another part time job, if it’s feasible for your life, can be one of the fastest routes into a home of your own. Even something such as bartending or checking in guests on the night shift at a hotel can make a big difference in increasing your savings for a a house. 5. Downsize your vacation. Vacations can be a big expense for families, with an average cost of several thousand dollars for a family of four. Consider instead less expensive options, such as several day trips to new locations near your current residence, or staying with friends when you travel instead of an expensive hotel. 6. Move back home. Moving in with family, whether your parents or other members, is not a popular option among most people. However, if you can give up the independence of living on your own for even a few months, the amount of rent you’ll save may give you the final push into affording a home. These six simple tips along with a little dedication can get you into a house sooner than you thought possible! A mortgage calculator is a great start to planning your savings--you’ll be able to see a breakdown of what you’ll need to save up for to get to a down payment, as well as what your end goal should be. Lender 411 has a multitude of resources for consumers, and using them can help you better understand how to afford a house. |
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