The real estate market can feel like a tumultuous place in 2022. It may leave you wondering, how can you budget for a new home in today’s market? Look no further for our top money-saving tips and ways you can feel confident about your next big home purchase.
Considering saving up to build a dream home? Learn about how much a new home build can cost. A great place to start with building a house is having an expert real estate agent who can help find you the perfect piece of land to call home-sweet-home.
The real estate market currently is in a transition across the country. There has been an influx of sellers listing their homes, which means more inventory (something that in recent years has not been the case). This increase in inventory is lowering home values. Know that even with interest rates increasing, it is still a good time to buy a home! Inventory means fewer battles to get your offer accepted, and it also means you won’t be overpaying for a property.
Tips for saving
So, you’ve decided now is your time to buy, but how can you budget for a new home? Inflation is happening all around us, and money can be tight. Check out our top tips for saving money to purchase a new home.
1) Know how much you need:
A great place to start is knowing how much money you will need. Find a trusted lender and learn how much you are pre-approved for. Also know you don’t necessarily need 20 percent down. Your lender can help you find programs that will lower that initial cost for you and your family.
2) Temporarily hold off on other savings:
Maybe you’re working to save for retirement, or for a fun vacation. Whatever your current savings goals are, place them temporarily on hold to focus on saving for your new home.
3) Get your debt under control:
A lender will pre-approve you for a mortgage based on many factors, but one is how much debt you carry. Work to get rid of as much debt as possible before you go to make a big purchase like a new house.
4) Get creative:
Get creative on ways you can make some extra money on the side. Think of ways to add to your overall income, even if it’s something small like baking cakes for family parties, or yard work for people in your neighborhood. Every penny counts!
5) Invest, don’t splurge:
Our final tip for budgeting for a new home in today’s market is to invest. If you fall into a sum of money (tax refund, insurance payout, a work bonus, etc.) be sure to invest that money, rather than splurging. Even if you only invest in a savings account that offers small interest earnings, it is better than spending the money. Before you know it, you will be reaching your goal of purchasing a new humble abode.