Is your goal for 2019 to buy a home of your own? Below are 3 tips for making your dream of buying a home come true:
#1 - Automate Your Down Payment Savings
Survey after survey, saving for a down payment is cited as one of the biggest barriers to homeownership. Jump start your savings by automating your checking account to automatically save a small amount of your paycheck into a separate account or "house fund".
Amassing enough for a down payment takes disciple and perseverance, but setting up automatic savings can make it easier. If you never see the cash, you won't spend it.
#2 - Build Your Credit History & Keep It Clean
When you go to apply for a mortgage, lenders will want to see that you have been able to pay off past debts. This means staying on top of paying your student loans, credit cards, and car loans on time!
Credit bureaus recommend using no more than 30% of the credit available to you.
#3 - Practice Living on a Budget
Downsizing your spending now will allow you to save more for your down payment and pay down other debts to improve your credit score. A recent study showed that "95% of first-time buyers were willing to make sacrifices to buy their home faster." Such as new clothes, a new car or traveling.