New year, new home? Here are three New Year’s resolutions to help you reach your financial goals and buy your own home with confidence.
Set a budget (& save more)
Those little impulse buys here and there might not seem like much at the moment, but they could be sabotaging your efforts to build a healthy savings account, which you’ll need to cover both your planned and unexpected expenses incurred while buying a home and moving. No matter how much you’re planning to pay for a home, directing more of your monthly income to various savings accounts, whether that’s a personal account, retirement savings, or even a Roth IRA, will grant you a healthier, more secure financial life.
Taking the time to plan a budget, set a savings goal, and start investing in your long-term personal finances will go a long way to help you meet your financial resolutions, save for a home, and move forward with a sense of financial security when you do find (or build) your dream home.
Decide whether you should buy or build your new home.
First off, know that building a modular home can actually be just as cost-efficient as buying an older home, as you’ll have fewer renovation expenses, repairs, and unexpected costs due to wear and tear, damage done by previous owners, and simply old age. However, there are additional factors to consider when building rather than buying, like where and how you’ll buy land for your new home. Here are some resources to help you determine which route will work best for your budget, lifestyle, and goals:
Decide on a down payment & start figuring out how to get it.
Yes, we already suggested that you start showing your savings account as much TLC as you feasibly can, but your down payment for a home should be addressed separately. You’ll thank yourself later. When saving for a down payment and considering your loan options, you’ll want to check your credit with an official credit report and assess any other debt you have, such as that from student loans, medical bills, or outstanding credit card balances. For more on getting a down payment for your home, see: How Much Should I Save for the Down Payment on a Home?
Depending on the complexity of your financial situation, it may be beneficial for you to consult a professional financial advisor to help you get your finances in order and set yourself up for greater financial wellbeing.