Currently Renting? Here’s how you become an owner.
Owning a home seems like everybody's dream and for many of us it may feel like an unattainable goal. If you currently rent your home, you can take steps now to help you out when you are ready to make the switch. Here are a few ways you can prepare:
1) Save your money up
Saving up money isn't always fun, but if you wish to buy a house one day you'll be needing a down payment for it. Saving up will take time, so start now! Take a look at your banking statements and identify where you may be spending excess money. Maybe it's entertainment expenses, dining out, or subscription services eating up your income. You'll be surprised by the little changes you can make to save big each month.
2) Pay off your debt.
The last thing you need after spending time saving money for a home is a bad credit score. Why?
Well for one thing, a higher credit score could help you attain competitive interest rates and you'll save money in the long run. If this isn't enough, if your credit is below 580 you may not even qualify for a home loan. Yikes. All that time saving money for nothing.
3) Figure out what you can afford.
These days there are several calculators on the internet designed to help you figure out what homes you can realistically afford. Avoid guessing your budget. It's not necessary. Depending on your lifestyle, it may benefit you to keep renting for a while. Online tools and calculators can tell you this right away, so take the guesswork out of it and use them. They're free.
There's nothing wrong with being a renter! For you, this may be the best option. Everybody's situation is different but if homeownership is an eventual goal for you, then start with step 1 today to at least give yourself a chance to own down the road.