Buying a home includes not only a down payment, which is ideally 20% or more of the purchase price, but also the costs of inspections, closing, and moving. High estimates in terms of saving for the average home exceed $55,000.1
Consider FHA mortgage rates and the requirements of other home loans
Bad spending habits can impede your goals and/or eligibility for an FHA loan. To break these, try the following recommendations
- Create a budget of monthly expenses and what you can afford.
- Use credit cards only during emergencies.
- Avoid bank overdraft and late fees.
- Cancel unused services and memberships and apply the savings to paying down debts.
- Keep visual reminders, such as pictures of houses you like.
To make the most of FHA loans and VA loans, you’ll need to develop good habits first. Your daily habits will influence your ability to buy a home, pay a mortgage broker, and factor in future decisions, such as when you refinance a mortgage.
Also, consider shopping habits. Aside from sticking to your financial goals and avoiding emotional spending:
- Separate needs from wants.
- Make a shopping list.
- Set up an allowance based on your budget.
- Shop with a critical friend.
- Take only the cash you need for planned purchases.
Once you break bad spending habits and are ready to buy a home, consult Elite Financial for help with a mortgage loan. Our mortgage company can help with a fixed rate mortgage, cash out refinance, or rate and term refinance. Ready to get started? We’ll assist you in finding the types of home loans that work best, so call (805) 494-9930 today!