How To Save for a House

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How To Save for a House
Owning your own house is a dream many of us work towards in life. It is a big step and often comes with a bigger price tag. Knowing how to save for your future home can make the process less stressful and more attainable. Here are some things to consider:

How Much Should I Save Before Buying a House?
You might be wondering how much you should save to buy a home. You need to save enough to cover the down payment, closing costs, home appraisal and home inspection. Down payments can vary but an average range would from $0 to 20% of the home price. An average range for closing costs are around 3% to 6% of the total loan amount. If you decide to hire help to move your things, then moving expenses should also be considered. The costs of moving can depend on how far you are moving and how much stuff you are taking with you.

Map Out a Timeline
Having a timeline can be a big motivator when trying to save for a house. Make sure that your timeline is realistic for you and your needs. Use your upfront closing costs to determine what your overall savings goal should be. Analyze what your current budget is and find out how much you can save each month to put aside for your new home. If you can set aside an equal amount of money each month, you can divide your overall savings goal by the amount saved each month and that will tell you how many months it will take you to reach your goal.

Check Your Spending Habits
If you are someone who does not pay attention to how much you’re spending daily and monthly, now would be the time to start. Paying attention and modifying your daily spending habits can make a big difference in how much you save weekly, monthly and yearly. Think about how much money you spend daily and what it is that you’re spending it on. When in saving mode, every dollar puts you closer to your goal so it’s important you are spending smart when trying to reach a goal. Ask yourself these three questions next time you buy:

• Is it necessary?
• How long will it make me happy?
• Will this benefit me in the long run?

Asking yourself these questions can be a reminder to yourself that you are saving up for a goal and it allows you to be a smarter buyer. Being aware of what you’re spending your money on can help you tuck away those extra savings weekly and monthly. Even if you think something is just a small cost, those small costs can add up quicker than you might expect.

Track Your Progress
It is important to track your progress to see how far you are from meeting your goal. By tracking progress, you can adjust your goals as needed. You may need to save more one month and less another month. Unexpected things come up and that may cause you to readjust your goals. Having your progress written down somewhere or having it digital will make the adjustments easier to handle. Being able to physically see your progress can be exciting and it is also a great motivator to keep going until your goal has been achieved. Saving up for a house is no small feat. Re-evaluating your lifestyle, setting realistic goals, and doing the proper research will help make your dream a reality.

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