Tips from Mandy Thomas
First, make sure you know how much extra you can put down on it a year and what the rules are around that. You don’t want to put extra down and find out that you now have to pay a penalty. BRAINSTORM WHAT THE NEXT 2-10 YEARS COULD LOOK LIKE FOR YOUI know this isn’t the “sexiest” thing to do, but it is so important to do this to make sure you are not just basing your decision on where you are now, but also taking into account the life changes that will more than likely be coming up in the pipeline or what will be coming up. Think of Life Changes Such As:
REALISTICALLY FIGURE OUT WHAT YOU CAN AFFORDTake your monthly take-home pay (after you’ve paid taxes) and figure out what is 33% of your income. As a financial coach, I see a lot of people who are living in homes that they truly can’t afford and they are now feeling the stress of having their fixed expenses so high and not a lot of “breathing” room to get ahead. The reason I say to figure out what 33% of your monthly take-home pay is, is because that is the highest that you would want your TOTAL monthly housing expenses to be. If it goes above the 33% mark, you will really notice that you are having a hard time with other bills, because your housing costs are such a large percentage of your income. If you can keep it towards the 25-30% mark that is better, obviously the lower, the better. When you are figuring this number out, I am not just referring to your monthly mortgage amount, you will also want to include within this is:
One of my biggest concerns I see when people are wanting to purchase a home is not having a truly clear picture of your finances, before looking for a home. When you are working with a realtor, a builder or other home professionals, they are only able to help you out as much as you can clearly articulate your financial situation to them. If you aren’t entirely clear on your financial situation, don’t expect those who are trying to help you to be either! They don’t see all of the things happening behind the scenes, they don’t know exactly what your expenses are, so you need to know this so they can properly help you find a home that is right for you, not just now, but in the future. But they can’t guess, so you need to do your own due diligence ahead of time, so they are able to help guide you into what is truly best for you. FIGURE OUT ROUGHLY WHAT YOU NEED FOR A DOWN PAYMENTIf you are considering looking at a home that is around $150,000 and you want to put down 15%, your goal will be to save $22,500 for a down payment. Sit down and actually play around with the numbers to see what you will potentially be looking at as needing to have saved for a down payment. OPEN UP A SEPARATE SAVINGS ACCOUNT TO PUT YOUR SAVINGS INTO FOR YOUR HOME DOWN PAYMENTMost people have one savings account but they are trying to save for multiple things in that one savings account, which makes it really difficult to have transparency to know how much you have saved towards all of your goals. This is just one reason why I highly suggest opening up a separate savings account that is just for saving for a house, some banks even allow you to “name” the account, which I also suggest doing! MAKE MASTERING YOUR CASH FLOW AN UTMOST PRIORITYThis is definitely one of the most important things to do before committing to putting extra towards your mortgage. When you have clarity with your money and you become really competent at mastering your cash flow (not just “budgeting”), you truly know how much extra you can put towards your mortgage without causing you to come up short in other areas. It will also help you to see your months that you may have higher income available to put towards your mortgage, so you can allocate it for it before it comes and all of a sudden is put towards something else. Feeling confident with cashflow management and taking control of your finances months in advance, is one of the skills that I help my financial coaching clients to achieve. By making mastering cash flow a priority, one of my clients “D” (to protect her identity), we were able to make sure that all of their goals were being achieved including paying into hers and her husbands retirement funds AND we were able to make it so they could put $50,000 additionally towards paying off their mortgage each year for the remaining term. FIGURE OUT WHEN YOU WOULD POTENTIALLY LIKE TO PURCHASEOnce you have figured out approximately what you need to save as a down payment, then figure out when you would potentially like to purchase. If it is 2 years from now, that is 24 months that you have to save up. Which you can then figure out how much a monthly, you need to start saving right away. If you want to save $22,500 for a down payment in order to purchase 2 years from now, you would need to be saving approximately $938 each month. If you wanted to save $20,000 for a down payment to purchase in 3 years from now, you would need to be saving $556 each month. Knowing how much you need to save each month, can really make it easier to figure out between you and your partner (if you are purchasing a home together), what the total needs to be that you will contribute and then you can discuss how you will break down what each person is contributing. PAY OFF CREDIT CARD & CONSUMER DEBT FIRSTFocus on paying off any credit card debt or consumer debt that you may have, so you have this high-interest rate debt paid off. Then you can “roll over” the money that you were paying towards these debts, to use as extra money to put into your house down payment fund.
44 Comments
Thank you for sharing the post/article.
Reply
9/15/2021 09:43:54 am
Good read. I have learned much from this article. Thanks a lot
Reply
9/28/2021 05:14:04 am
Great article! Thank you for sharing this informative post, and looking forward to the latest one!
Reply
1/3/2022 04:57:44 pm
I appreciate what you said about paying off the mortgage as fast as possible. I need to get a new loan for 15 thousand dollars. I'll have to consider getting an agent to help me with the payment plans.
Reply
3/4/2022 09:19:43 am
You made an interesting point when you explained that it is a good idea to focus on paying off any debts that you might have when trying to purchase a home. While you are paying off your debt, it might be a good idea to consult with a loan officer. The loan officer will be able to help you figure out what loans you might be able to qualify for.
Reply
This is an Excellent & great post. I LOVE this article! It’s such a beneficial for all visitors. Contact us on WHATSAPP for quick response. You can also start a LIVE CHAT session to place an order without any hassle. We recommend you to contact us even after placing the order using our forms.
Reply
9/21/2022 08:42:18 pm
A wise method to buy a home if you're getting a mortgage is to set aside at least 25% of the sale price in cash to pay for a down payment, closing costs, and relocation expenses.
Reply
9/21/2022 08:46:47 pm
A down payment, a high credit score, and a manageable debt-to-income ratio are some of the most crucial conditions for purchasing a property. Homebuyers should also budget for closing expenses, which must be paid before the last piece of paperwork is signed to purchase the property.
Reply
11/29/2022 07:00:34 pm
A down payment, a high credit score, and a manageable debt-to-income ratio are some of the most crucial conditions for purchasing a property. Homebuyers should also budget for closing expenses, which must be paid before the last piece of paperwork is signed to purchase the property.
Reply
11/29/2022 07:05:55 pm
A wise method to buy a home if you're getting a mortgage is to set aside at least 25% of the sale price in cash to pay for a down payment, closing costs, and relocation expenses. Therefore, if you spend $250,000 on a home, you might pay more than $60,000 to cover all of the associated costs.
Reply
12/21/2022 04:11:55 pm
Being real about what you can afford it's one of the most imporant steps, Some people just want to get the nicest house, car, phone or many other things whiout realizing that they can't actually afford any of those things and then get knee deep in debt so be really careful with that. good thing that with ComfortTemp you will get the best service you can at the most affordable price, that's why they're my top one duct cleaning company in Jacksonville.
Reply
1/17/2023 07:12:05 am
nice post. Thank you for posting something like this
Reply
1/18/2023 01:30:53 am
I read this post your post so nice and very informative post thanks for sharing this post
Reply
1/18/2023 03:59:40 am
very interesting, good job and thanks for sharing such a good blog.
Reply
1/18/2023 04:28:38 am
Thanks for sharing this site bro. fantastic
Reply
1/18/2023 04:49:10 am
Raising your credit score can help you access competitive financing options. Many credit card issuers and banks provide credit scores for free.
Reply
1/20/2023 08:04:05 am
Hey Mandy thanks a lot for sharing this tips with us, I'm really sure that they might help a lot of people looking to buy a house! I would like to recommend you the best HVAC service in Gainesville!
Reply
1/25/2023 08:33:20 am
I’ve been surfing on the web more than 3 hours today, yet I never found any stunning article like yours.
Reply
1/27/2023 06:30:34 am
How much should I save before buying a house?
Reply
2/15/2023 09:03:48 am
In God's time, I claim that next year's gonna be our turn to have our own home soon!
Reply
2/15/2023 07:38:47 pm
Start automating transfers into savings with each payment, even if it's a smaller amount than you hoped.
Reply
2/18/2023 04:42:32 am
Brokers are dedicated mortgage professionals who will commit themselves to guiding you through the home buying process from start to finish.
Reply
2/22/2023 07:12:38 am
We have been trying and trying to work more and earn more to buy a house. I am praying everyday that we'd be able to finally buy and sustain it for our children in the future.
Reply
2/27/2023 07:26:26 pm
I really like seeing websites that perceive the value of providing a quality useful resource for free. Good work
Reply
2/27/2023 09:15:07 pm
The property market in your area will determine how long it takes you to find your ideal home. But, after you are under contract, closing takes place on a home in an average of 45 to 60 days. When negotiations and counteroffers are involved, closing can take even longer, while it can occasionally happen in less time than 45 days when both the buyer and the seller are eager to close the deal.
Reply
3/1/2023 05:32:01 am
The kinds of documents you'll need to apply for a home loan can include pay stubs, tax returns, bank statements, and investment account statements.
Reply
3/1/2023 09:13:19 am
Most of this article also applies for Home remodeling, Sometimes when you want to get some upgrades for your home you might need to get another mortgage in your house in order to afford them1 I would like to recommend my favorite Home remodeling in wheaton
Reply
3/4/2023 06:49:24 pm
Buying a house might be very costly but it is always the best investment.
Reply
3/6/2023 06:41:50 pm
I recommend my all fellows to read this great and informative post. Keep it up!
Reply
3/8/2023 01:33:56 am
You may find as you start shopping for financing that many mortgage companies recommend you put at least 20 percent down. This is done for a few important reasons, though the main one is that with 20 percent down, you'll be able to avoid a monthly private mortgage insurance fee.
Reply
3/8/2023 08:24:28 am
Yes. I view it as additional feedback. If the commenter happens to mention something I talked about or otherwise sounds like they knew what I was reading, I find that to be a good sign I was able to get my message across.
Reply
3/10/2023 06:32:01 am
This is just one reason why I highly suggest opening up a separate savings account that is just for saving for a house, some banks even allow you, Thank you for the beautiful post!
Reply
3/11/2023 10:55:35 am
But in the future. But they can’t guess, so you need to do your own due diligence ahead of time, so they are able to help guide you into what is truly best for you. Thank you, amazing post!
Reply
3/12/2023 06:15:58 pm
Thanks for taking this opportunity to discuss this, I feel fervently about this and I like learning about this subject.
Reply
3/15/2023 10:50:25 am
Thanks so much for the advice to have a truly clear picture of what you can afford before you jump to buy a house. My sister and her husband have been looking to buy a house and they've been trying to budget for it. We've been looking into finding a mortgage loaner to help them understand how much they'll be able to pay and what monthly payments are going to look like.
Reply
3/18/2023 11:26:06 am
When you are working with a realtor, a builder or other home professionals, they are only able to help you out as much as you can clearly articulate your financial situation to them. Thank you for sharing your great post!
Reply
3/21/2023 09:00:51 am
I want to buy my own house someday. Thanks for sharing!
Reply
Leave a Reply. |