Financial Tips for the First-Time Homebuyer

buying a new homeBuying a new home is a complicated and difficult process, and it’s normal to feel overwhelmed at some point during the process. For many first-time homeowners, however, the search for a starter home can be especially stressful. Unfortunately, smart financial decisions are rarely made during periods of extreme stress, which is why it’s so important to take your time. Otherwise, you may find yourself in some serious financial trouble either before or after buying a home. That’s also why the act of saving money is so integral to the home buying process.

In 2016, of all those who purchased new homes for sale, roughly 33% were first-time buyers. If you fall into this category and it’s your first time buying a new home, then you’re going to need all the financial help you can get. Here are some amazing tips that will help you save enough money to afford that perfect starter home:

Create a strict monthly and weekly budget

Without a strict budget, you’ll never achieve your financial goals. With every dollar you save, you’re one dollar closer to making an offer or down payment on your first home. However, if you want to purchase a home in the next year, as opposed to the next decade, you have to do more than simply tuck away a few dollars each week.

You need to have a strict budget set for every week, every month, and every year (if that’s what it takes). Additionally, you need to make sure your budget is realistic. It may sound counterintuitive, but your savings goal should not be too ambitious. Rather, set easily attainable goals that won’t cause too much short-term financial stress. The more realistic your goal, the more likely you are to stick to it and achieve it.

Setup an automatic savings plan

You can talk to your payroll department at work and have them set up an automatic savings plan specifically for your future down payment. A portion of your paycheck, whatever amount you want it to be, can be sent directly into your savings account via direct deposit. You won’t even have to think about it. There are also apps that automatically analyze your spending habits and save money for you. In either case, it’s possible to save money while you sleep.

Ask for professional help

If you are having trouble setting up a budget and sticking to it, consult with an experienced financial planner. These professionals know exactly what it takes to handle all the financial aspects of saving up and buying a home, so look to them for guidance. It’s completely normal to have questions about the home buying process, and a financial planner can ensure you are on the right track to buying a home.

Whether you’re checking out luxury houses for sale or a nice, small starter home, be sure to focus all your efforts into saving money. Buying a new home might be stressful at times, but it’s also exciting if you know you are in good financial standing. If you’re ready to make this next giant leap in your life and want to check out new Drexel Hill homes for sale, contact Creekside at Llanerch today, and good luck!