After years of renting, you may be excited about the opportunity to become a first-time homebuyer. Whether it’s a single family house or condo, creating a budget to build savings is a good first step. Here are several helpful tips for growing a nest egg designed to accommodate your current income and financial lifestyle.

3 Budgeting Tips Aimed at First-Time Homebuyers

1. Track Your Spending

Document just how much you spend each week on everyday expenses such as groceries, gas, and eating out at restaurants. This is on top of your fixed monthly bills such as car loan payments and utility costs. You’ll have a better idea of where the cash flow is going, where spending can be scaled back, and how much you can earmark toward saving for a house.

2. Determine Affordability

Another way potential first-time homebuyers can customize their budget is knowing how much they can afford. By getting pre-approved with a mortgage lender, you’ll receive the maximum house cost, interest rate and monthly loan payments based on your salary and debt-to-income ratio. Once you know these figures, it will help you budget accordingly to save for a down payment. Additionally, you can assess how much you can afford to pay monthly for the mortgage.

3. Create a Preferences List

It’s tempting to get swept up in the euphoria of living in a home with a sparkling swimming pool, chandeliers, and an upscale kitchen. Unfortunately, these types of amenities increase the home’s cost and may exceed your budget. Create two lists: features you desire and those that are necessities. For instance, think about how many bedrooms you need, and consider whether or not a garage is a necessity. Once the wants and needs are put on paper, first-time homebuyers can compare home prices, narrow their choices, and develop a budget that fits their preferences.

These are just a few tips to get started on coming up with a budget to save for that new dwelling. Dan Main in St. Peters, MO, is the area’s trusted resource for first-time homebuyers. With more than 20 years in the mortgage industry, he helps people secure financing to move into a residence. What makes Dan unique is you’re never treated like an account number. He takes the time to listen to your situation, and he follows through based on your preferences and financial needs. Call (636) 284-4144 to schedule a complimentary consultation. Visit the website for information on the agency’s full suite of home loan options.

Dan Main: NMLS # 502036
Flat Branch Home Loans NMLS # 224149
947 Waterbury Falls Dr
O’Fallon, MO 63368
This is for informational purposes only and not an offer to lend or extend credit.