No matter how much home ownership seems like the natural next step for people, the perception that affordability will be a barrier continues to persist.
A new report states that despite the healthy economy, many potential home buyers are still concerned about affordability. To many in the real estate industry, this concern is now outpacing worry over a lack of inventory.
If this is a concern of yours, keep in mind that there are loan programs available, such as FHA Loans and VA Loans, that offer low down payment options and more lenient credit score guidelines. Some loan programs also allow you to utilize gift funds.
Also, if your goal is to become a home owner and you are looking for ways to build up a savings to do so, Element Mortgage offers the below options to help give your bank account a boost.
- Establish a budget
A personal budget is a good way to keep track of where you are spending your money. If you don’t already operate your finances off a budget, consider starting to do so. As you begin to regularly analyze where your money is going on a monthly basis, you may be able to make adjustments to your spending habits that help open up funds that you didn’t have before.
- Cook more
After you have a budget, you may discover that you are spending quite a bit of money every month on eating at restaurants. While it is certainly easier and quicker to do so, the cost that comes along with it can add up quickly. Attempt to cook more at home and watch as your monthly food spending decreases.
- Try a spending freeze
Choose a month and significantly cut down on buying things that aren’t essential in that timeframe. You would be surprised how only making essential purchases changes your budget.
- Auto-deposit into savings
Take the decision-making out of your savings. Decide how much you can comfortably save each month and set up your auto-deposit to place that amount from your paycheck into your savings account on a monthly basis.
- Downgrade or cancel services
Do you really watch all of those channels? Analyze your monthly cable bill and if you think you can either downgrade or cancel your cable service, consider it. You also may have insurance coverage that is higher than it needs to be. Take a look at your policies and speak with an insurance representative about your options for saving.
As you can see, with just a little bit of effort and changes to your spending habits, your budget could change dramatically. And over time, it could help you build up that financial cushion you may need to make the jump to becoming a home owner in Roseville.
If you have any questions about the home loan process, make sure you reach out to one of our mortgage consultants.