Who doesn’t want to own their own home? Nothing beats the joy of havinga house and knowing that you have the freedom to do what you want with it. However, buying a home isn’t always affordable. Even if you earn a healthy salary, there is a lot to consider when applying for mortgages and finding a home that suits your needs.
To help you get on the property ladder, below are some ways to save money for your first home.
Create a Sensible Budget
If your aim is to buy a house, the best place to start is to create a sensible budget. Figure out the timeframe for when you might be able to buy and establish what you need to save each month to get you there. To start, look at your monthly expenditure, your credit card statements, bills, etc. Make a note of how much you’re spending on necessities versus non-essentials, and then decide where you can cut back.
See if You Qualify for a Loan
While you may not be in the position to buy just yet, it’s worth considering your loan options when the time is right. For example, you may want to look into loans from private lenders like Sachem Lending, or you may want to investigate government loans like VA mortgages and USDA mortgages, which offer no down payment options. Other government options include Federal Housing Administration (FHA) loans which require a 3.5% down payment on the home and a good credit score.
Downsizing is another great way to save money. While it might mean temporarily putting up with less space, the benefit is that you can put more money aside each month. Downsizing could even include selling one of your extra vehicles or moving to a more affordable neighborhood. The key to this process is to reduce your expenses below your means.
Increase Your Salary
If you find your salary is just barely meeting the bills, then you might want to ask for a raise or find a higher-paid job. Depending on how long you’ve been at your job, you may be eligible to ask about a raise earlier than your annual reviews.
Alternatively, if moving is an option, finding a job that you love with a higher salary can be incredibly worth it. The key is to remember what your goal is — being able to buy a new house — so making small sacrifices along the way is worth it.
Everyone needs a holiday or a break at some point. However, if you’re in the process of saving for a house, you may want to resist taking a holiday altogether or find ways to plan a vacation on a budget. For example, if you typically enjoy going abroad for a sunny beach holiday, try swapping it for a staycation instead. While it’s not healthy to simply work all the time and burn yourself out, it’s worth reviewing your holiday plans and finding ways to make them less expensive. After all, a vacation doesn’t need to be somewhere exotic or luxurious to be fulfilling.