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Buying a house is on nearly everyone’s wish list, but it’s become especially challenging in recent years, thanks to rising costs and expenses in real estate. However, it’s still perfectly doable as long as you’re organized and methodical about saving up enough money for it. With a few helpful suggestions, you’ll soon be able to afford your own home. 

3 Tips for Saving Money to Buy a House 

1. Create a Budget 

Figure out a realistic time frame for when you want to start the process of buying a house, and make a goal for how much money you want to save up. Typically, five figures would suffice for a down payment that would qualify you for a good mortgage. The best rates are available if you can supply a down payment of at least 20% of the house’s total worth. 

Start a savings account for the down payment, decide on a modest amount of money to put into it every month, and arrange the rest of your budget around it. If necessary, reduce your other expenses since even a small difference can add up significantly over time. Set up automatic deposits for your monthly savings so that you’re not tempted to skip it. 

2. Snowball Debt Payments 

buying a houseTo improve your credit score, prioritize paying down your debts. The fastest way to do that is to put whatever money you can afford toward the debts with the smallest monthly payments first, such as a credit card or car repair. Once that debt is paid off, apply the money that you were paying on it toward the next smallest monthly payment. Keep doing this until you’re making substantial payments on your largest debts, such as school loans or medical bills. Once you’re free of debt, pour all the money that you were using to pay it off into the savings account for your down payment. 

3. Get Some Practice 

A year or two before you’ve accumulated enough savings for buying a house, pretend as though you’re making a mortgage payment on top of your rent payment. Set aside the money for the “mortgage payment” as part of the savings for your down payment. This way, it will be easy to adjust your financial planning once you’re officially a homeowner, and you’ll have even more money to put toward the house you want. 

 


For more professional advice and guidance in preparation for buying a house, contact Chattanooga Title in Chattanooga, Tennessee. After more than 40 years of reviewing title insurance policies and closing documents for real estate purchases, they’ve built a reputation as a reliable and thorough mortgage title company in their community. As such, they’re more than ready to help you achieve your dreams of homeownership. They’ll even research the history of the property you’re considering so that you can make a fully informed decision. Make an appointment today by calling (423) 756-3057 or messaging them online

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