8 New Years Resolutions That Can Help You Save for a Home
Does #NewYearNewYou involve purchasing some new real estate?
If one of your New Year resolutions is to purchase a home or investment property follow this blog for 8 easy ways to save for a home so that you can make your Real Estate resolution a reality!
- Consult a Financial Planner
Before you start creating more resolutions to save enough for a property it’s imperative that you meet with a planner to get a good understanding of your current financials and what is a reasonable goal for you to achieve. Financial planners will also help you find ways to save extra money so that you can accomplish your saving goals sooner.
- Avoid Getting a New Job
If you are looking to buy a house this year, it might not be the best time to job shop or hop. This is primarily because the most important factors a lender considers when evaluating your mortgage application are your employment history and income. Use your discretion if a great career opportunity comes available and consult with a mortgage broker before the switch to see if this would raise flags for underwriters.
Ideally, underwriters are looking for two years of a steady job and pay. Don’t be concerned if you do get a new job while shopping for a house—it’s not a non-starter, just be prepared to show extra paperwork.
It’s also worth noting that moving from a commissioned or hourly job to a salary with equal or more pay may help your application. Again, consult with a lender before-hand and explain your situation.
- Avoid Unnecessary Spending
A home is a large purchase, and there are a lot of hidden and additional fees that arise outside of the actual purchase. In order to save for the unexpected, you’ll want to limit your spending. Contacting your local bank for a meeting with an advisor is a great way to figure out budgeting.
- Set Up Digital Insights
When you do contact your local bank for a meeting with an advisor, a great added benefit is setting up your online banking. Most banking provides digital insights that show you how much you spend in each spending category so that you can save your desired amount based on your income. Royal Bank’s NOMI insights are a great added feature that allows you to track your spending on your Credit Cards so that you can save accordingly.
- Set Up Limits on Your Credit Card
Most banks with digital insights allow you to cap limits on your spending in different areas. For example, if you and your partner eat out a lot, you can put a cap for only $200 a month for food. The insights will alarm you when you are near and surpassing your limits, which can help you avoid any additional unnecessary spending.
- Set Up Self-Populating Accounts
A great way to save extra money is to set up a TFSA account and have an allotted amount of money be extracted from your account from each paycheck. By having a set amount reduced from your paycheck you are more likely to save more because the amount is deposited into a separate account. There’s also great taxable benefits with using a TFSA.
- Limit monthly subscription services
Monthly subscription services are excellent but can add up. These services are designed to appear as not very expensive, but when you look at them over an annual basis, they are pricey and add up. Try to limit these accounts to a minimum to save more.
- Focus on Building a solid credit history
One of the first things a lender will look at is your credit history, as it is a snapshot of how likely you are to pay off your bills. If you want to purchase a home, focus on paying off your credit cards and other debts in full (when applicable) and on time. The less you appear as a risk, the better!
- Align Yourself with a Good Brokerage
Before you decide to buy or sell a home, you want to be aligned with a good brokerage that has your best interests in mind. Before you begin the process, start contacting brokerages to find the best fit for you. One important thing to inquire about is their buying and selling commission, as this will determine how much money you give away from your sale or purchase.
PC275 has one of the most competitive percentages in the business, as we sell for as low as 2.75% total commission.
Contact PC275 today to get a FREE personalized buying or selling form from one of our exceptional agents.
[email protected] or 1 (888) 415-0275