In this article, we shall be learning the best methods to save for your very first home. We have interviewed some of the best names in the real estate sector which include prominent home buyers in Seattle, investors and concerned bodies that help you overturn foreclosure fast. Read on to learn some of their expert views.
Wendy Connick from CNN asks intending home buyers to Determine how much to keep aside. In her words she advised
“The first step in saving up your down payment is to pin down the amount you can responsibly spend on a house. Lenders will typically limit your mortgage amount so that your monthly housing payments (including property taxes and insurance) will not exceed 28% of your pre-tax monthly income.”
We also had to meet to meet with Alexander Romanov, Co-founder of iwillbuyhouse.com and a certified real estate and home buyer in Seattle also showed just how people can determine the right amount to save when planning to acquire a house. He said
“it is always right to let my clients understand the right amount to save in relation to their monthly income. Say the buyer earns $7,000, we advise they rightly put aside $1,960 as a down payment for their home on a monthly basis. This is exactly 28% of their monthly income. This amount will have to cater for their homeowners’ insurance, the private mortgage insurance (PIM), homeowners association dues (HOA), mortgage principal and interest”
Candice Elliott advised buyers to be clear on the type of house to buy, she also added that
“If you have visions of white picket fences and weekends spent gardening, this is the choice for you. It will probably be the choice with the most additional expenses, though. A single-family home is not necessarily an investment. But a multi-family home is. You live in one unit and rent out the others as a source of passive income. You may even be able to rent at a rate that pays the entire mortgage so you are essentially living in your home mortgage free.
Even if you live in the apartment next to your renters, you don’t have to be a hands-on landlord if you don’t have the time or inclination. You can hire a property management company to handle all aspects of being a landlord”
- Make provisions in your budget specifically for the house.
Depending on your monthly income and time frame, what every aspiring homeowner should always do is create ample room for financing the house. One should cut down on expenses and at the same time look for ways to earn more.
- Gather your financial freebies
Those financial freebies or windfalls you get in form of income-tax refunds, gift awards or bonuses, commission checks and so on have to all go into the mortgage savings account. This will in no doubt hasten the process of your home acquisition.
- Discipline yourself
While you adjust your expenses in order to cater for your house down payment, sometimes people get tempted to acquire things they don’t really need. If you really want your landing a new home to be a success, you have to be disciplined and work towards it religiously.
In relation to all of these, should you be on the lookout for methods of selling a home fast or have questions on how to stop foreclosures on your house, Alexander Romanov is a real estate investor with the needed experience to help you help.