The month of March has us all thinking about luck. How lucky it would be to be handed the money to buy that new home!
You’re going to need more than luck if you want to compete in the real estate market. With prices on the rise, a blessing can only get you so far.
Instead of searching for that pot of gold under the rainbow, you can use this opportunity to make your own fortune.
Preparing to buy a home all begins with hitting the start button. Here’s how you can prepare your finances for buying a home:
1. Decide You’re Ready
The first step is to decide. Decide you want to buy a new home and decide you must take your finances seriously. Buying a home can’t just be a daydream – you must make the decision to actually move forward with the process. Think about if now is the right time to purchase a home; do you have any other big expenses coming up? Do you feel comfortable in your career? Is now the right time? Think long and hard and then make the decision to move forward.
2. Don’t Make Any Major Life Changes
Once you decide to buy a new home, make sure no surprises come up along the way. Ride out your current role at your job, don’t open any new credit cards or make any big purchases; do whatever you can to stay lowkey during this time. Your budget will be your best friend and ignoring any impulse buys or jumping ships will be the key to getting you through the home buying process.
3. Work on your Budget
Grab a cup of coffee, turn on some relaxing music, and dive into your finance. Write out your current expenses and bills as well as your income and debts. Seeing everything visually will help you to really hone in on what needs to change. Get rid of any unused memberships, and maybe even do without the cleaner or Starbucks for a little bit – instead, set these fees aside for potential savings or unforeseen costs that will come up during the homebuying process.
4. Pay off Your Debt
Before you decide to inquire even more debt, pay off what you can now. Commit to making all your current bill payments on time and start increasing that credit score. Avoid creating additional lines of credit or making unnecessary purchases during this time.
5. Take Your Time
Buying a new home is a marathon, not a sprint. You might feel like you need to buy a new home as soon as possible, but we encourage you to take your time. The market is everchanging, and it may seem like you must strike while the iron is hot, but sometimes, the slow game is the way to play. Make sure you are 100% ready to buy. Plus, the longer you wait, the more time you must save!
Are you ready to start the homebuying process? We’re here to help! Contact BSR Realty Group today.
