5 Tips On Financing Your Dream Home

So, you’ve decided to join the almost 64 percent of homeowners of families in the United States that own their home. But you don’t just want any home; you want your dream home.

Luckily for you, it’s not the hardest thing to accomplish, but it is still quite the task. Whether you want a move-in ready home close in the suburbs or an oceanfront oasis that could use some fixing up, your dream home is within arms’ reach.

Read on to find out five of the best tips for financing your dream home.

1. Start With a Finance Check

The first step to financing your dream home is to check in with your finances. A few things to look at include:

  • Credit score
  • Outstanding loans
  • Other amounts of debt
  • Current monthly expenses
  • Monthly income
  • How much is in savings?
  • How much more could you be saving per month?

Sometimes, it’s necessary to meet with someone to go over these things, but it isn’t impossible to go over everything yourself. It’s important to be real with yourself for this step, though.

You can choose to ignore your finances every month, but when it comes to time to finance your home, you’re going to have to set some boundaries and take some financial risks.

2. Prepare to Meet in the Middle

However, you can minimize those financial risks by compromising or learning about where you’re ready to meet in the middle.

Where can you make adjustments to the budget? Are you willing to give certain things up in exchange for other, more important, things?

Here are a few questions to ask yourself:

  • How many rooms and bathrooms do you need?
  • What location do you want or need to live in?
  • What type of house would you like to live in?
  • How long do you plan on staying there?

For example, you might not find a ready-to-move-in home on the beach, but you might find a fixer-upper within walking distance — if not right on the water — that fits in your budget.

Are you willing to give up the convenience of a move-in-ready home for your dream location? Remember, you can change virtually everything in your home. You cannot change its location.

Now, this doesn’t have to be the compromise you make. It can be sacrificing a pool or the dream walk-in closet you wanted. The choice is completely yours to make.

3. How Are You Going to Save?

The next step is to figure out your budget and how you’re going to save. There are a few questions you can ask yourself when setting up these goals and making a plan:

  • Where can you cut back?
  • Can you pick up extra work?
  • What is your deadline for savings?
  • What are my biggest obstacles?

When looking for places to free up money or potentially earn extra for your fund, it’s best to look at current expenses first.

Can you stop ordering takeout multiple times a week? Can you sacrifice your nail appointments for a few months?

If you’re not willing to give up on certain things, there’s no reason to feel bad. You have to reevaluate your situation and see what other places you can pull from instead! This method will be the most successful at getting money quickly, especially if you adopt a side hustle, but you have to make sure that you’re comfortable with all of it first.

If not, can you afford to take a bit longer to save?

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4. Hire an Agent

An award-winning mortgage broker (or a financial adviser) can help you take all the necessary steps to finance your home. Unless you’re an expert yourself, self-navigating the experience of buying a home is not a great idea, as it can lead you to pay unnecessary costs and fees.

Experts know their way around these fees and can help you avoid them or minimize their costs.

Some experts are free, and others are not, but that shouldn’t stop you from speaking and working with someone. It has the potential to pay for itself in the end.

5. Set up Your Plan

Now that you’ve figured out your finances and hired a professional, it’s time to set up your plan. Ideally, this plan is going to come with a timeline and plenty of goals. Having an overall purpose and smaller tasks to accomplish while reaching your goal will help a lot in the long run.

Establishing a separate savings account that’s harder to access is a great way to get yourself started. Allocating a portion of each paycheck (or the entirety of any money you make from your side hustle) to this account is going to help it grow. When you see it grow, you’re only going to become more motivated to keep going!

Create a dream or vision board to keep alongside your plan as well. This board will help you picture yourself in your dream house once all that hard work has been accomplished.

It’s also going to help you figure out exactly what you want to find in your house hunting journey!

Finance Your Dream Home Today

While you may not reach your goal today, it’s going to happen eventually. Now that you’ve set yourself up for success and have goals that you can work to reach, all it’s going to take now is determination, patience, and strength.

The best part? You know results will be worth it in the end, because you’ll have your dream home waiting for you!

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