In the real estate world, perhaps you want to figure out your finances and save for a down payment. Or perhaps you want to sell and downsize and invest your equity. Here are some tips to make those next steps a reality.
1) BUDGET – You knew this was the first step. The dreaded word, budget! Budgeting doesn’t mean you have to cut back right away. Start by tracking your spending. Pull your credit and debit cards and categorize your spending. See where your money is going. Then highlight the items you can do without or can manage less of. Perhaps you have excess subscriptions that you don’t really use, perhaps your manicure can take place every other month, perhaps you can limit your dining out. If drafting a spreadsheet is not your jam, try one of the various budget apps available. Some ideas include YNAB, Goodbudget, EveryDollar, and PocketGuard among others.
2) SAVE AND INVEST – If you have a long term goal to save for a down payment, parcel out some money to invest. Or if you are looking at downsizing your home, it might also be a good time to invest. It could be a great time to talk to a financial planner to get the most bang for your buck – there are many local planners who can put your money in the best possible position to see growth over the long term. The younger you are, the more aggressive and risky you can be with investments. Over the long term, you will see your nest egg really blossom!
3) PLAN – The best way to see savings grow, is to have a short term, actionable plan. Create a savings goal every month or even every week where you set aside a smaller amount. If your goal is to have a down payment in 6-12 months, it’s easy to do the reverse math that calculates the incremental savings.
4) BE REALISTIC – You need to know where you are headed to get started. That requires that you understand the financial reality of buying a home. Purchasing a home requires not only a down payment, but also closing costs. Contact Prime Title and your lender to get a quote on the closing costs involved. Your lender can also discuss different loans you might qualify for. Many loan products are available that won’t require a high percentage for your down payment. In fact, the median first time home buyer down payment is only 8% according to the National Association of Realtor’s data.
Once your finances are in place, contact Prime Title for a quote and to discuss the process of closing on your home. We would be more than honored to assist.
See you at the closing table!
Anne Elise Doise
Attorney At Law
337-235-0047
