If you’re a first-time home buyer and think you’ll sit on the sidelines waiting for a hefty price discount, it isn’t the time! Instead, let’s get you moving toward homeownership now!
This month let’s tackle the financial steps to complete the home buying process. Over the next three months, use these tips to get yourself financially ready to buy a home. No one can do everything immediately, but if you start taking steps today, you can be in your new home for the holidays or in the next 12 months.
Increases in your daily necessities like groceries, gas, and even internet costs will impact your budget. Be even more disciplined with budgeting and telling every dollar you make where it must go.
First, work on paying off all your debt and building an emergency fund.
- Our Broker/Owner, Steve Prescott is a Laramie County Ramsey Trusted Advisor. He refers to Dave Ramsey’s Financial Peace University steps suggesting baby steps to accomplish zero-dollar budgeting.
Start with your smallest debt so you can feel a sense of progress!
- Paying off your debt will help your credit score and allow more freedom for you when you have a monthly mortgage to pay. Nothing will derail your home buying goals or the maintenance after you purchase faster than an emergency, so be prepared by saving for 3-6 months of expenses.
Secondly, plan to stick with your house costing 25% of your monthly budget.
- Knowing this number will help when you begin to home shop. Thirdly, save for your down payment. If you can put down 20%, then you’ll avoid the PMI expense that is added to your mortgage, but if that isn’t doable for you at this time, then aim for 5-10% down. Our current average home price in Laramie County is close to $400,000; using that number, you’d want to save $20-40,000. That is a lot of money, so that’s where your commitment and discipline will need to enter the picture.
We wish you luck with getting your spending, savings, goals, and plans started! If you have questions, call us at 307-635-0303, and we’ll help you!