So you want to buy a house.
Well, let’s talk about the important stuff — MONEY!
You can purchase a home with as little as no money down, or as much as you want to put down, all depending on which loan program you qualify for. No money down? That sounds awesome right?! Well yes, it is, but what is most often forgotten about is the closing costs. You should budget for about 3-5% of the sales price for your closing costs. This covers all your inspection fees, loan fees, and settlement fees. Now, there are grants available to help cover those costs, but that is another topic for another day!
Without a doubt, it can be hard to save up. I want to share a few easy ideas on how you can save up your money to purchase a home.
1. I saw this one on TikTok. I didn’t write down their name, but what she was doing was tracking all the things she WANTED to spend her money on throughout the day/week, and adding it up. By not spending that money, she was saving it. For example, if you wanted to buy a cup of coffee for $5, and decided not to, that’s $5 you just saved. Maybe it is a new pair of shoes that you saw for $60, and you decided you didn’t need them, so you don’t spend the money on them. Now that’s $65 you saved just today alone! It adds up very quickly. But, I am not saying never treat yourself, but instead just be aware when you do spend and keep a healthy record of it.
2. Use your credit card. Ok, this one you HAVE to be very careful with. You may have a $6,000 limit, but in reality, to help your score, you don’t want to use more than 30% each month. Which means in this situation, do not spend over $1,800, and make sure to pay it off before the end of the month to avoid the high interest rates. The lower the usage, the better!
When looking into credit cards, make sure you are looking at ones that give you good cash back, then you can make money on the money you spend. But, I need to reiterate this again, be very cautious with a credit card because you can get yourself in trouble, very quickly.
3. Start couponing! Yup, be that person at the store with the paper coupons. If you don’t want to cut it out, there is online options as well. Try out Ibotta! It is easy to connect to stores like Walmart and Food Lion. All you have to do is go through the app, pick out which coupons you want, and then buy your regular groceries! I know Food Lion also has an app, that you can use for coupons, and if you spend a certain amount of money on groceries, like chips, you can get money off your next purchase.
4. This one is small, but a tiny habit that builds up over time. Call your bank and ask if they will round up your purchases, and put that money towards saving. This means if you buy something for $40.30, they will round it up to $41.00 and automatically put that $0.70 into savings for you.
Well, I think that is a few easy and simple ways to start saving your money. I’d love to know how it goes for you when you start to save, and see how quickly it can add up. Best of luck on your future savings!
–Contact Amber for more information and to get started on this incredible home buying journey.