4 Simple Ways to Save For a Down Payment on a Home

At some point in our life-time, we will aspire to own our own homes. However, the down-payment of a house can be anywhere between 5% to 20% of the cost of the house– and in most cases, 20%. This is a big chunk of change that many of us don’t have, and one of the biggest reasons why many people opt to rent instead. That being said, the possibility of buying your home isn’t impossible. Consider the following simple cash-saving tips to help your dream of owning a home become a reality.

Skip your morning coffee run.

Mornings always become instantly more enjoyable after your daily trip to the coffee shop.  While spending $5-$7 on a latte and a muffin every morning may not seem like that much money, it really ads up after a month– or a year. Try to make coffee at home or at the office, and pack your breakfast. It may not be as glamorous or tasty, but breaking this daily habit can save you up to $1,500 a year.

Automate your savings.

Set aside a fixed amount every month and don’t waiver from it.  It can be as big as $300 a paycheck, or as small as $20 a week. If you stick to this savings plan, you’ll have a nice pile of cash in no time. Be sure to bring your collection to the bank every few weeks so that you don’t have too much cash lying around, making you vulnerable to theft.

Put aside tax refunds and other gifts.

After getting your tax return, it’s tempting to go spend the extra money on that a luxury item like that new kitchen gadget you’ve been eyeing. Instead of letting the money burn a hole in your pocket, put it away in a savings account. The same goes for cash gifts from birthdays, anniversaries, or holidays. While saving this extra money won’t feel as fun as spending it, you’ll thank yourself down the line.

Take on a side gig.

Even if you work full time, chances are you can give up some of your down time to a second part-time job. This side-gig can be an independent business or freelance position like blogging or tutoring. If taking on another job seems overwhelming, keep in mind that this isn’t permanent; it’s just for a small period of time so that you have some extra cash flow. Don’t forget to put the extra money you earn straight into savings so you’re not tempted to spend it.

Once you start saving some money and getting into your new routine, seek the advice of a financial advisor to find out what kind of home you’ll be able to afford, and how long it will take you to be ready. Don’t be discouraged; if you want to be a homeowner, you’ll get there– it just takes time, patience, and a lot of discipline.

How do you save money when preparing for a large purchase like a down payment? Let us know in the comments below. 

website: http://dreamcasa.org/

How Do You Know If You’re Ready to Sell Your House?

Whether you’re thinking about relocating for work, down-sizing, or expanding your living space– the decision to sell your house can impact your finances significantly if you’re not well prepared. Keeping your own interests in mind, how do you know if you’re ready to make the change or if the timing is right? Here are a few very simple, but extremely important questions to ask yourself:

Does your home still fit your lifestyle?
Have your kids grown up and moved out, leaving you swimming in extra space? Are you thinking of starting a family and need more room? If you answered yes to either of these questions, perhaps it’s the right time to sell your home. Maybe your commute to work has become too long, or you live farther away from your friends and family than you’d like. Whatever the reason, if your home no longer fits your lifestyle, it may be time to look into your finances and see if a move is in the cards for you.

Is there an abundance of home-buyers in your market?
There are a handful of factors that come into play when determining the amount of buyers that could be interested in your home. It has been proven that more people look to buy homes in the spring and summer months over the fall and winter months. Sunnier weather can aid in the curb appeal of your home, which will attract more buyers.

In order to ensure that a significant amount of potential home buyers will be interested in your property, research other homes in your area that are for sale. Assess the listing prices of these homes and compare them to what yours could sell for. Depending on what you find, it may or may not be a good idea to list your home at that time.

Can you afford to move?
Between moving expenses and closing costs, you might feel your wallet taking a big hit if you’re not prepared for all the expenses involved. Upon selling your home, expect to pay commission to the real estate agents involved (which could be anywhere from 1% to 6% of the home’s sale price), moving expenses, home maintenance expenses, and more. To be sure you’re prepared for all the costs that are involved in selling your home and the events that follow, it’s advised that you set aside about 10% of the market cost of your home to pay with. Depending on the buyer’s agent, if you decide to opt out of having your own seller’s agent– you will still have to pay the the real estate agent’s commission.

Do you have enough home equity?
If the equity on your home is significant, selling your house may be a great move. In order to find out if you have equity on your home, subtract your mortgage balance with the worth of your home. Depending on the amount of equity you have, you may be able to pay off the remainder of your mortgage and various selling costs– if that’s the case, it could be a good time to sell your home. If the equity on your home isn’t high enough to warrant an immediate profit and pay off the closing costs you may have to pay out of pocket– in which case, you may not want to sell your home just yet, and maybe opt to renting out your house instead if you really need to move.

website:http://dreamcasa.org/ 

Top Five Reasons to Sell Your Home in the Spring Season

Figuring out when it’s not a good time to sell can be easy. You’ll obviously have less potential buyers when people tend to be out of the house or busy, such as during the Christmas season and middle of Summer. Most buyers also have less money to work with during these times due to money spent on gifts and vacations.

But the better question is: when should you sell? While every sale and area is different, the majority of markets have shown that there’s no better time than Spring to put your house up for sale. Here’s why:

1. Buyers Are Ready To Purchase

Temperatures aren’t the only thing heating up come Spring season. The housing market always gets busy between the months of April and June due to an influx of eager buyers. Since winter in most places is too harsh to consider hunting for homes and relocating, early spring is when a lot of buyers finally start looking for a place— usually much warmer than their current location.

Keep in mind: since there are plenty of other sellers during this season we recommend putting your property up for sale early to get a lead on the competition.

2. Everyone Wants To Get Settled Before Summer’s End

Homebuyers are anxious to get through the homebuying process in Spring, making them more inclined to buy before the season is over. This is because relocating and getting settled takes time, especially if you have a family. Buyers want to get into their home between late Spring and early Summer so they’re prepared for the upcoming school year. It’s also great for work since it allows you to get acclimated with your new job early in the year.

3. Homes Sell Faster and For More

According researchers at Zillow, there’s no better time to sell your home than the Springtime months. Their studies showed that homes listed between mid-March and mid-April sold about 15% quicker than homes listed during any other time. People who sold their homes during this time also landed an average national premium of about $4,000 since sales numbers are around 2% higher. If a quicker sale and more money doesn’t convince you to sell in Spring, we don’t know what will.

4. More Buyers Means Better Bidding Wars

Although Spring brings out more sellers for you to compete with, it also means numerous buyers. The wave of potential homebuyers during this season means you’ll probably get more offers than any other time. If your property is an attractive option, you can expect bids to go up as people fight to claim your house as their own.

5. The Millennials Are Finally Ready This Year

The last few years have been tough on most Americans, especially millennials. Thanks to factors like high unemployment, oversaturation of college degrees, and bigger student loans than ever before, most millennials haven’t been ready to buy a home. However, 2016 is when things started turning around for everyone, making Spring 2017 the ideal time for younger buyers with money saved up to finally do what for a while seemed impossible— own a home.

website: http://dreamcasa.org/