Learn how you can save for a home and pay off your debts at the same time.
If you have a significant amount of debt, then buying your own might seem like an impossible dream. In truth, you’ll need to pay off much of your debt before you can apply for a mortgage loan. However, this doesn’t mean that you can’t save for a down payment at the same time. Here are some tips to help you achieve both your aims.
Set a Savings Goal
If you want to buy a home, you’ll need to have enough saved for a down payment. To determine how much you need to save, speak to a banker or mortgage lender. Then determine how much you can afford to save every month. Finally, calculate how long it’ll take you to reach your goal if you maintain your savings schedule. Do your best to have enough saved for a down payment by this deadline.
Make a Separate Savings Account
Another way to help you save is by opening a new savings account dedicated to your down payment. By setting up this separate account, you can have a clear understanding of how much you have saved. Additionally, having this separate account will make you less likely to spend the money in it.
Pay Off Debts Strategically
Make a list of your debts and organize them by the interest rates on each. Do your best to pay off the debts with the highest interest rates first. Once that one is cleared, move your way down the list and pay off the debt with the next highest interest rate.
Try out these tips to help you save for your down payment while still paying off your debts. If you’re looking to buy a new home this season, make sure you get the dedicated service and top-tier escrow services that you deserve. Contact the professionals at Brighton Escrow in Hermosa Beach, California to make your home buying process a breeze.