7 tips to own your dream home sooner
Category Money
From My Home has asked Property Professional, O'delia van Wyk, where future clients can cut on their budgets in an attempt to save for a bigger deposit.
1. Say no to more debt
Taking on new debt can have a major impact on your mortgage application because your debt-to-income ratio is so important. Basically, you need to make more money than you spend.
2. Budget ruthlessly
When you are getting ready to buy your first home, it is important to have a budget.
That means keeping track of every bill, shopping trip, vacation and large purchase. Tracking your money will allow you to know exactly how much you can afford.
3. Start saving now
My main goal is to save. I cut back on my spending and opt to rather save money. It is so satisfying to see how my bank balance continues to grow.
Saving money will help you to eventually cover your down payment, closing cost, moving cost and so forth.
4. Raise your credit score
Your credit score is the most important part of getting yourself financially prepared to buy your first home.
Anything that requires a loan, calls for a good credit score. I have vowed to improve my relationship with my credit score (and money) so that I can live the life I want.
5. Lower your existing debt
Lower debt will help you to get home ownership faster.
First, you need to obtain your credit report to see which outstanding debts you have.
You can make an arrangement with your creditor to get these outstanding debts taken care of. Sometimes, you can even negotiate a better deal.
6. Be responsible with credit
To increase your credit score, only use one credit card for small purchases and pay off the balance in full every single month. Cut up or put away unnecessary cards, only using one card to responsibly grow your credit.
7. Pack lunch every day
It may seem trivial, but saving a few extra rand a day, is definitely going to boost your savings - you will notice the result in no time.
Photo Credit: https://www.freepik.com
Author: Machelene Joubert