Tons of people are cracking open a brand new planner and dreaming big about where the next 365 days will take them. Maybe it’s a trip that’s been on the bucket list for far too long. Or maybe it’s a goal to get out of debt. No matter what the goal is, a new year marks a new beginning, one full of hope and of determination to make the days ahead better than the last.
One of the biggest goals out there is owning a home and for good reason. There are lots of ways to invest money these days, and real estate is one of the only places you have the real potential to see a return in the long-term. And we’re not just talking about money.
Many people have set a goal to buy a house this year. You can be one of them. Here’s your guide to making 2018 the year you buy a house.
Buying a home is different than any other purchase you’ll make. There’s so much to know: which house is best for you, how much to put down, what paperwork you’ll need to sign, etc. But the one thing that separates home purchases from any other type of purchase is the long-term game. When you make a move into real estate, keep these questions in mind:
- What is my long-term goal? Am I looking for a home I can live in for the rest of my life? Do I want to invest in a rental property to generate more income?
- What are my other goals in life? Do I plan on retiring at 65? Do I want to have the flexibility to own a home and travel for work?
- What are my financial goals? Get out of debt? Make six figures?
When you make a plan to buy a house, all your other life goals will be tied to the project. The job you have, the career you want, the amount of money you make, what you want to do with your spare time… all these things are connected to your homeownership goals. So, when you set your goals, make sure they support one another. You’ll reach your goals quicker!
Spending Less to Get More: Budgeting
This is by far the most important step you can take when it comes to homeownership. If you plan on buying a home that is $250,000, how are you going to come up with the 10% down payment ($25,000)? Well, it’s simple: create a budget. I’m not sure how you feel about budgeting, but I do know most people have strong feelings towards it, both good and bad. Here is my tip and trick to making your budget work:
Be True to Yourself. The first pitfall of budgeting comes from overextending yourself. Yes, a budget can help you reach your financial goals, but you don’t have to kill yourself to do it. You work hard for your money; you should be allowed to enjoy it. I recommend you base your budget on what you need to live a slightly comfortable life. What is a slightly comfortable life? You’re able to eat well, put gas in your car, and enjoy 1 to 2 moderately priced things that make you happy. One rule you can stick to is the $100 Rule: if whatever you want costs more than $100, don’t get it.
Also, be creative. Can you cut down on your food bill by to cooking more at home? Can you take turns carpooling to work with one of your nearby friends? Keep your eyes open and ears tuned for possible money-saving opportunities.
Find the Right Real Estate Partners Now
It’s never too early to consider who the best partners are for your real estate journey.
Start by picking a mortgage company who can get you pre-approved. Our pre-approval process is simple, quick, and will give you the confidence to know how to set your goals for owning a home in 2018.
Let’s go on this journey together and make at least one of your dreams come true!
Felecia’s Raving Fans
“Felecia is a true professional. We were looking for a specific type of house to accommodate our family. Felecia listened to what we wanted and had several houses lined up for us to see. The second house we looked at was the one we wanted. It had everything we wanted but was a little over our budget. She got us in touch with the right people and we were able to make it work. From beginning to end, Felecia was always willing to help where she could and always made herself available for any questions or concerns we had. I would highly recommend Felecia to anyone looking to buy or sell a home. She truly will be exactly what you need.”