It’s all about consistency; start where you are now, keep going, and before you know it, you’ll be in the home you’ve always dreamed of.
Make Your Goals Clear
Take a look at your current financial situation and make sure your goals are attainable for your current budget. Assess things like your credit score and make sure your debt-to-income (DTI) ratio is within the range of what lenders look for (many lenders look for less than 36%). This will help you prepare to find a home that matches your financial standing.
Establish Your Plan
You’ll want to create a timeline of when you want to purchase your home. Is that six months from now, or are you looking to purchase a couple years out? No matter where you are, it’s a good idea to have a timeframe, that way you can establish how aggressively you need to save. You’ll also want to consider how much of a down payment you’re ready to make. Between 5-10% is ideal, but this can vary depending on factors such as how long you have to save and how much you have saved already, as well as which loan program you qualify for (some programs are as low as 3.5% – ask your lender for details).
Keep Track of Your Accomplishments
It’s a good idea to track your progress so that you have the motivation to continue on the savings route to your future home. Whether you make a spreadsheet to document your success or simply use pen and paper, you’ll find that push you need to keep going. Consider celebrating with a sweet treat or night out when you hit milestones!
If you fall off track with your savings – don’t fret – it may be time to review your finances again and readjust your goals. Life happens and your finances may look different down the road. The point is that you don’t give up, even if the amount you’re able to put in your savings account decreases. It’s all about consistency; start where you are now, keep going, and before you know it, you’ll be in the home you’ve always dreamed of. QCBN
By Greg Riordan
Greg Riordan is a Loan Officer with Legacy Mutual Mortgage. For additional information or to get in touch with Greg, visit www.GregRiordan.com or call 928.427.5156. You may find his office at 325 W Gurley St #102, Prescott, AZ 86301. Greg cares about the people that choose to trust him with the biggest asset in their lives – their home. He will give straight, honest answers with exceptional advice whether you are refinancing your home to pay off debt, lowering your rate, reducing the length of your loan or looking to purchase your first or next dream home. Greg Riordan, NMLS # 832841 | Gardner Financial Services, LTD., dba Legacy Mutual Mortgage, NMLS #278675, an Equal Housing Lender.
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