ExecutiveChronicles.com | How to Save Up for Your First House in 5 Easy Ways | Owning a house is one of the hallmarks of the American Dream and according to research, more people want to own real estate than ever. According to a survey, 84 percent of people in the United States wanted to buy a home in the past year. However, even though the real estate market is doing well and is great for buyers, amassing enough money to buy a house can be difficult.
If you’re one of these people who want to but their first home, you may have trouble funding your dream. Saving up is the best option in this case.
Here are five effective tips you can employ to make this process easier and buy your dream house.
- Boost Your Credit Score
The best way to secure funding for your new home is through bank loans, specifically mortgages and similar financial arrangements. However, you will need great credit scores to get the best rates for mortgages and loans. Your credit score is determined by many factors, such as your debt, salary and ability to pay back financial obligations. If your credit score is bad enough, banks and other financial organizations may go as far as to deny your applications entirely.
If you want to improve your credit score, the first thing you need to do is make sure to pay all your debts on time as possible. This will show banks that you are able to make good on loans. This is by far the most important way on improving your credit and securing good arrangements on mortgage loans.
- Sell, Sell, Sell
To save money, you need to make a lot of money. What you get from your day job can only go so far, and you may need to supplement it with alternative revenue streams. One of the easiest way to save up enough money is to sell everything and anything you no longer need.
Start with things you have plenty of. For example, if you have closets full of old clothes you don’t wear anymore, you may want to put them up for sale online. You can also look for buyers for hobby items, like trading cards, books or anything else you think can fetch a fair price. Each dollar you make is a dollar that can go to buying your dream house.
- Move in Somewhere
Renting an apartment alone can be very expensive and that’s money that could be funding your new home. According to research, over 31 percent of adults in the United States share their homes with other people, whether that’s with family or roommates. Saving up can be much easier if you don’t have to hand half your monthly salary to your landlord.
Find a roommate you can split your rent with or a lodger if you are sharing your apartment already. Unless you have any objections, you can move back home or with another relative to not pay rent at all.
- Set Aside Regularly
It will be easier to build up a savings account for your first home if you manage to save a set amount every month. You can achieve this by allotting a portion of your salary to your savings. You should adjust this amount based on what you make. For example, if you’re living on an occupational therapist’s salary, you could afford to set aside a larger amount than if you were working behind a counter.
Calculate your finances carefully and see how much of your salary your expenses eat up. Carefully assess how much of the remainder you can put aside per month and stick to it and you can build a considerablesavings account in no time.
- Downgrade Lifestyle
Finally, if you really want to have more money you can save, you’ll need to make some sacrifices. Downgrading your lifestyle is the best and easiest method you can try. If you’re used to eating a lot of takeout food, it’s time to find cheaper restaurants or learn how to cook meals yourself. If you used to get a spa treatment or similar luxurious procedure every week, maybe push it to every two weeks instead. All these small sacrifices are important because each unspent cent takes you one step closer to your first home.
Buying your first home is a major hallmark of anyone’s life. Saving up for it as quickly and as efficiently as possible will help you establish your independence and prepare you for anything else you may need. So start saving up today and you may just walk through the door of your first home sooner than you think.