There are a lot of expenses when it comes to buying a home. First-time house buyers are often surprised at how much it costs to buy a home and the expenses that come after the home is purchased. Use these homebuyer savings ideas to keep your finances on target.
New Homebuyer Savings Ideas
Every penny counts when it comes to major purchases, and buying a house is certainly a major purchase! Whether you are in escrow or still in the house hunting phase, saving is of critical importance. Along with taking a first-time homebuyer course, you can start preparing for this step in your budget. Here are a few ideas of what costs you might see as a first-time homebuyer.
- Photocopies of important documents
- Time, energy and gas money house hunting
- Realtor commission
- New door locks
- Window dressings
- Property taxes
- Utility or telecommunication set-up charges
- Closing costs
- Home inspection
This is just a sample of what you might expect. Every state and situation are unique. You may be buying a fixer upper or a move in ready home. Both have their own costs. Keep these items in mind as motivation for homebuyer savings.
Saving Money Before Buying a Home
As you start considering the idea of buying your own home, apartment or townhouse, you will most likely need to come up with a large sum of cash towards your down payment as well as all the additional costs. So here are some ways you can easily begin saving.
- Limit entertainment. Stay home and watch a DVD instead of going to the movies.
- Delay any upgrades to furniture or decorations. Wait until your new place to make a splash.
- Sell some items to make some cash. Then you will have less to pack!
- Stop buying new clothes. If you need something, buy from a thrift store or borrow from a friend.
- Eliminate debt quickly. This may sound counter-intuitive. However, the less debt you carry the better, and you will have more cash for savings once you are done.
Saving Money After Buying a Home
Once you are in your new home, there are ways to continue to limit expenses and save money.
- Try DIY repairs instead of immediately calling someone. However, if you know you have two left hands, it may be best to let the professional do it!
- Prioritize projects based on needs and budget. You’re in it for the long haul. Take your time with projects that aren’t essential to daily life. Resist the urge to put everything on a Home Depot credit card without having the means to immediately pay if off.
- Keep your expectations in check. You may have to settle for items that are less luxurious than you desire. Instead of a high-end custom kitchen remodel, consider painting your cabinets or switching out hardware until you have saved up enough to cover the entire renovation.
Hopefully, you will find these first-time homebuyer savings ideas useful! Try this first-time homebuyer’s guide for more information.