I saw a post on Twitter about a couple who saved over $100k to buy their first house by sharply cutting expenses. I immediately thought, well, they lived with parents for 3 years. Which was partially right, but mostly, they just “skimped,” every day – with cheap beer, and lots, and lots of peanut butter sandwiches. If you are saving for your first home – do you have that dedication?
Do you need it, is the real question?
Saving To Buy Your First Home
Many people do not realize how many programs are available for first time home buyers. There are mortgage credits still available, and there are substantial grants, and several different mortgage programs that do not require ANY down payment, including USDA Home Loans and Veteran Loans.
You are also allowed to sell Assets (like your husband’s Harley – though that might not be a wise choice), or get gifts from family members to help with any closing costs!
The Seller can pay for most of your closing costs, and we can help you structure your offer to purchase so that it really is a pretty net neutral (meaning often only about $500 dollars maybe?) that you will need for closing. AND you get to skip a month, in most cases, before you have to make a house payment!
So, saving to buy your first home does NOT need to be this daunting task that includes tens of thousands of dollars for a down payment… however, you SHOULD have some cash in your pocket when you are ready to buy a house.
Why? Because there are other costs associated with buying a house – and there are moving expenses, and draperies and maybe even the need for a new lawn mower 🙂
So, here are a few tips on saving for your first house, we think they that may be helpful for first time home buyers:
1. Pack your lunch – it seems like a no-brainer, but actually saves $10-15 per day over eating out with friends! We bring left overs to work now. Our friend just eats a peanut butter sandwich for lunch every day and skips jelly because it’s, “An unnecessary expense.”
You don’t have to go off the deep end like the folks who saved a $100,000 in cash, but the concept of saving via homemade lunch is just one example. Ditto with just drinking water when you go out. Why spend the extra cash on Iced Tea when you can drink water for FREE.
2. Speaking of unnecessary expenses, cut them out. If you don’t really go to the Gym, or you are just as happy being able to run outside – do it. If you are hooked on going to a Gym, why not see if you can get a better deal? There are plenty of $20 a month type places around. And it’s not just the gym.
Have you called your Insurance Agent lately? How about Time Warner, or checked with your Cell Phone provider to see if there’s a way you can reduce your costs? Lots of people don’t even have TV anymore!
3. Make coffee instead of stopping at Starbucks.
4. Choose the “$3 draft over the $14 cocktail.”
5. Keep your eyes on the prize. Sometimes you just need a reminder of why you are sacrificing so much. I’ve created several Pinterest Boards that hold ideas for my “Next House.” Scrolling through there can be fun for me, and reminds me of why I’m sitting at my desk during lunch!
More Tips for first time Home Buyers who are Saving Money for your First Home:
Go ahead and meet with us (your Lender) EARLY in the process! Let us peek at your credit, look at your pay stubs and give you an honest assessment about your decision to purchase! Often times folks think they need to pay something off, and they don’t.
Getting Pre-Approved means you are acting as a Cash Buyer for a Seller, and usually means you will get the best deal!
You might think you have to wait 6 months – and we might be able to tell you NOW is the time! Even if it IS six months – let us talk to you about the taxes, and insurance and the tax benefits!
While you are saving money for your first home, let us HELP YOU get your credit in order – this is what we do all day, and we don’t charge for that help! (Here are some questions to ask your lender!)
So Relax! NC First Time Home Buyer Programs can help you do this! Saving for your Home in NC is FUN! Call Steve and Eleanor Thorne, we offer today’s Best Mortgage Rates, 919-649-5058. Connect with us on Google Plus and Facebook