Ignite FB Tracking PixelHow Your Bank Account Impacts Homebuying - Rebecca Peltz
How Your Bank Account Impacts Homebuying

by Rebecca Peltz 12/03/2018

If you’re looking to buy a new home anytime soon, getting your finances in order is an excellent first step to getting the keys to your dream property. No matter where you want to buy a home, your financial picture is the most critical aspect of buying a home. Read on for some tips to get you financially prepared to buy a house.


Set A Savings Goal


Buying a property will require a significant amount of money up front. From closing costs to the down payment, you need to set a specific amount to save up before you even get out on the house hunt. 


Break your savings goal down by month over a yearly number if you have multiple years before you buy. 


Have A Specific Account For Savings


If you don’t see it, you won’t spend it. Tuck all of your savings in one account. Use automatic transfers to make saving from your paycheck easier and seamless. Before you even check your account, you’re on your way to your savings goals. You may not want to keep your money in higher yield accounts. These may not allow you to take the money out when you need it. Take the time to shop interest rates on savings accounts at different banks. Some may even offer a bonus. Just remember always to pay yourself first. Don’t be tempted to spend the money that you have saved.    


Rethink Your Budget


Depending on the amount that you want to save to buy a home, you may need to cut costs significantly. Take the time to do a budget and see where you may be able to cut down on costs. Should you cut the cord on cable? Are you going out to restaurants too often? Another idea is to call your phone company and other utility providers and ask about discounts. You may need to make some lifestyle and budgeting adjustments in order to get on your way to your dream home.


Use Gifts Wisely


Did you get a big Christmas bonus from work? Did a relative give you a monetary gift for your birthday? Take all of the extra cash and stash it away in the account that’s dedicated to your home savings. It will only help you to achieve your goals faster.


Keep Your Accounts Stable


Before your loan can close and the keys to your dream home are yours, you’ll need to make sure you don’t make any significant purchases. You need a paper trail for all of your money. Before you buy a home is not the time to go nuts and buy furniture or buy a car. These things can affect both your credit and debt-to-income-ratio.   

      


About the Author

Author
Rebecca Peltz

I have been practicing real estate for over 10 years and I am recognized by Hour Magazine as one of the top 5% of all Realtors in south east Michigan.

I attribute my successful real estate career to my many satisfied clients and customers. I am a firm believer in providing the professional real estate services my clients and customers expect and deserve. I pride myself on staying current with the real estate industry to effectively maintain up to date marketing trends to ensure confidence in those that have entrusted me with perhaps their largest assets.

I look forward to adding you to my list of satisfied clients and customers alike.