How to Save for a Down Payment
Seven Strategies for Saving
by Marlene Crawford, Mortgage Specialist
With interest rates down and inventory up, many savvy consumers are taking a good, long look at investing in a home of their own. The benefits are big and the rewards
buying a home long-reaching. For some consumers — a down payment is the only thing standing between them and the dream of home ownership. In today’s economy, it’s not always easy to save the necessary funds to not just get into a house of your own, but get a decent interest rate as well. Here are some simple things you can put into your personal or family action plan for saving that down payment money in less time.
- Get in the know. Like any good budget or savings plan, the first place to start is to determine where you are NOW in relation to your credit score, your monthly bills and assets. Contact me or a trusted mortgage professional to see how much home you qualify for and how much you’ll need to save to purchase your home. We can help you take a look at things like credit scores, loan requirements and interest rates now so you can be simultaneously doing ALL the things right during this savings period to ensure the most favorable rate and terms.
- Set a deadline. I know deadlines seem ominous to some, but they can be powerful motivators to accomplish great goals. (And buying a home is a pretty big goal!) Again, once you know where you are – it will make setting a timeline easier. For some, step one of the savings plan may be paying down or even off some past debt with high interest – which could back up your time table. Together, we can help you figure out which direction is best for you.
- Create a “Down Payment” account. Ever see those little ceramic pots with “House Fund” or “Vacation Fund” on them – or the piggy banks with the “do not open ‘till holiday shopping time” labels? By opening a savings account just for your future home purchase, you help lessen the likelihood of tapping into that money for other things. Check with your bank, or even local credit unions to see if they offer any special interest rates or programs for first time home owners looking to buy.
- Take a good, long look at your monthly bills. Do you have credit cards or revolving credit with high interest rates and high monthly payments? That’s doing two things to hurt your cause. First – those interest rates are costing you big and just money out the door. Secondly, those high payments are bad news for your debt-to-income ratio. You may have to tackle those bills first and get them behind you. Make a list of your creditors, how much you owe, the interest rate and the monthly payments. Take the highest interest rate one first, get it paid off and then work on the next one, etc. (Plus it feels REALLY good to pay those guys OFF!)
- Automate your savings. Out of sight, out of spending reach. Once you’ve figured out how much you can sock away every month, have that amount automatically withdrawn from your account and put into savings before you even see your paycheck! (Most employers can do this in a simple step if you are direct-depositing.
- Ask about IRAs. If you have IRAs, check to see if yours has any first time home buyer benefits. Some will allow you to invest a considerable amount of pre-tax dollars and withdraw without penalty for home purchases and they often provide more return on your investment than a traditional savings account. Check with your IRA provider or financial advisor first!
- Every little bit counts. This is the fun part. Get a money container for your house. You can make it as decorative or as plain as you like. From a beautiful glass jar (where you can see your results) to a coffee can (where you can hide your treasure) – and make a pact with yourself, your spouse or significant other and even your kids. Each week put whatever you can in the jar towards your house fund. From leftover change from the store, to the couple dollars here –into the jar it goes. In fact, whatever you’d NORMALLY spend – save instead – such as forgoing the coffee house vente latte at $6 a pop every day – that’d be $42 a week you could put in there. Or pack a lunch instead of buying. You could save $5-$10+ a week. That’s another $25! (Plus you’re not wasting food! Bring those leftovers to work!) Make it a fun thing every day and at the end of the week count up your accomplishment, put it in an envelope with a deposit slip and put it into your savings. It’s amazing how fast it can add up when you make it a contest or a fun thing for the whole family!
Saving for a home of your own can be challenging, but it can be exciting too. The feeling of reward and accomplishment is extraordinary. Start with these seven steps and very soon you too can enjoy the long term benefits of setting down roots and investing in your future.
Know that I’m always here to help. As a Mortgage Professional, I can help you customize a savings plan all your own so that you can be sure your family is heading in the right direction every step of the way! Call me today at 727.787.2299.
The Downgrade and Home Loan Rates
What does it mean? 
Standard & Poor’s (S&P) downgrade of the United States’ credit rating from AAA to AA+ was historic-and Stocks have certainly been volatile since the downgrade.
But US Bonds and home loan rates haven’t been crushed by the news.
If you’ve heard questions about the downgrade and home loan rates, keep the following points in mind:
• Despite the downgrade, there are a number of factors that bode well for US Bonds and home loan rates.
• S&P is currently the only credit rating agency that has downgraded the United States.
• Both credit rating agencies Moody’s and Fitch have maintained the United States’ AAA rating.
• More importantly, the ongoing credit crisis in Greece and other parts of Europe means that US Bonds are still considered one of the safest places to invest.
The bottom line is that home loan rates remain near their historic best levels, but about the only thing that is certain in the markets right now is the volatility. If you know someone who has been thinking about buying a home or refinancing, call or email us today. We’ve go the answers you need, when you need them.
Making Your Military Move Easier…
Six Ways to Take the Stress Out of Your Relocation
Life on the move can be stressful for military families with orders in hand and a big to-do list in front of them. Take a deep breath and know that making things easier for you and yours is a priority for a lot of folks who appreciate your service and are grateful for your commitment. As a real estate professional who specializes in working with our active-duty military service members and veterans, I want to do all I can to help you de-stress and make your move as simple and fun as possible. Let’s take a look at six ways to help you do just that!
- Don’t try to go it alone. Depending on which branch of the service you’re in – there is a liaison ready, willing and able to help you prepare. Contact your base transportation office for an appointment as well as your finance office to make sure you’ve got the inside scoop on exactly what your benefits are and what they can do to help ease the transition.
- Ask! If you’re planning a do-it-yourself move, don’t be shy about asking for military discounts and special services. From moving costs to hotels, restaurants and rental cars along the way to your new destination – so many organizations are eager to show their appreciation and give something back in return.
- Get a referral. If you’re looking to set down some roots outside military housing and invest in home of your own or even renting outside the base – get a referral! As an experienced agent, I have a trusted network of real estate professionals from coast-to-coast who can help you find a property that is just what you need at the right price and terms!
- Ask about mortgage assistance. Buying a home is a huge investment for your family – but with today’s prices and low rates, it’s a perfect time to set down roots. Know that there are special mortgage programs developed just for you as active duty or retired that can help ensure that you get the most favorable rates and terms anywhere. If you need help finding a mortgage professional with your best interests at heart, give me a call. I’ll make sure you’re connected!
- Taking care of the what-ifs. A big question for military families is should we buy if we don’t know when our next orders will come through? As a professional who works side-by-side with military families, I know how stressful this question can be. Before you do anything – call me. We can take a look at your individual situation and help determine what’s best for your family. Know that we have solutions for selling or renting your home should you have to move again and can help make that process as seamless and painless as possible.
- Getting settled. It’s a little unnerving to find your way around a new community. That’s why I make it a point to do as much legwork as I can to help you find the right schools, shopping, community centers, arts programs and even area handymen, lawn care specialists, health care options and more. Call me for a list of trusted resources that you can count on when you move!
We are honored by your commitment to country and proud to specialize in providing excellent service to our military members and valued veterans. We are passionate about helping make your lives easier. Call us today and learn more about how I can help and I thank you for all that you do!