10 “Skips” That Will Help You Save for a Down Payment

  10 “Skips” That Will Help You Save for a Down Payment   Start saving now with these 10 simple tips. Selling in the greater Houston area? Get a market analysis report Purchasing in the greater Houston area? Get full MLS access   When you’re saving up for something as big as a down payment for a home, some monetary sacrifices must be made—and I’m not just talking about saving the leftover money on your paycheck. To make your dream of homeownership come true in months instead of decades, you’ll likely have to make some simple changes in your day-to-day expenditures. To help you get started, here are 10 things you can skip that will make a big difference in your bank account: 1. Starbucks. Buying a $4 latte every day can easily cost you over $1000 a year. Even if you go with a cheaper $2 option, that’s still around $500 you could be saving annually. Try brewing your own coffee. 2. Going out for lunch. It’s just a quick meal to keep you going, but eating out each day adds up quickly. Try bringing a homemade lunch to work with you. 3. Your commute. Is there a way you can carpool with co-workers or work from home a few days a week? Either of these will save you on gas and vehicle wear and tear. For something as big as a down payment for a home, some monetary sacrifices must be made. 4. Dry cleaning. There are many ways you can save on dry cleaning. The first step is to check out these 19 ways to dry clean at home. 5. Car washes. The average price of a car wash is $7. A weekly car wash means $364 a year. Get out the hose and bucket and spray your way into savings. 6. The gym. The average gym membership is around $54 each month, but you can avoid this payment by doing home workouts, where you can still achieve the same results! 7. Cable TV. Simply cutting cable out can save you $1,200 a year. You’ll most likely need an alternative for your TV-watching needs, so subscriptions like Netflix and Hulu will cut into this amount. 8. The movies. The average ticket price is around $9, but if you’re a movie buff, how can you avoid seeing the latest and greatest shows on the big screen? Well, it’s not the ticket that gets you—it’s the popcorn, drinks, and candy that can send a family of four’s movie-going expenses into the hundreds. Stick with the ticket and you’ll save. 9. Living alone. Renting your own place alone can be incredibly expensive. Just adding one roommate could instantly cut your expenses in half! Generous family members may even be willing to let you move in for a period of time, allowing you to put any rent money into your down payment stash instead. 10. Giving gifts. Though we’ve just passed the holiday season of 2018, think about how much you spent. Was it a lot? If you’re trying to save in 2019, perhaps think about going for heartfelt gifts instead of expensive ones. Crafty creations and thoughtful cards make for gifts that can stand out—without costing a fortune! If you have any questions or need more information, feel free to reach out to me. I look forward to hearing from you soon.   Written by Ruby Miranda on January 14, 2019. Posted in Buy A Home, Buyer Tips, Financing A HomeTags: Money Tips, Ruby Miranda Trackback from your site. Leave a Reply

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Why Your Pre-Approval Should Not Determine Your Home Buying Budget

  Why Your Pre-Approval Should Not Determine Your Home Buying Budget   Just because you’re pre-approved for a certain amount doesn’t mean that you can afford it. Here’s what I mean. Selling in the greater Houston area? Get a market analysis report Purchasing in the greater Houston area? Get full MLS access Today I wanted to talk to you about a very common question I am asked, “Why am I shopping for less than my pre-approval amount?” When you are looking to purchase a home, there are a few different things you need to realize. The first one is that the amount that you are pre-approved for is not necessarily the amount that you want to spend on a monthly basis. This little pointer will help make sure that you stay on budget and do not get overwhelmed by payments. The max pre-approval amount is unimportant. The max monthly mortgage payment is what you really need to look at. You should be comfortable with the amount you are spending each month on your home. You may be able to get approved for $300,000, but you may not want to deal with the payment that goes along with that price. Find out what you are comfortable spending on your mortgage on a monthly basis, and ask your lender what home price that equates to. This little pointer will help you stay on budget and make sure that you do not get overwhelmed by your payments. If you have any questions about this or have any other real estate needs that I can help you with, please feel free to give me a call or send me an email. I look forward to hearing from you soon.   Written by Ruby Miranda on September 24, 2018. Posted in Buy A Home, Buyer Tips, Financing A Home Tags: Buy Your Home, Buyer Tips, Financing A Home, Ruby Miranda Trackback from your site. Leave a Reply

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How to Figure Out How Much House You Can Buy

  How to Figure Out How Much House You Can Buy If you’re looking to buy a home but are unsure of how much house you can afford, here are five steps you can use to figure it out. Looking to buy in the Greater Houston Area?  Get a full MLS accessLooking to Sell in the Greater Houston Area?  Get a free home market analysis One of the questions I get asked a lot as a Realtor is, “How much house can I buy?” In other words, how can you determine what your housing budget is when purchasing a house? There are five steps you must follow: Figure out your household’s income after taxes. What do you and other income earners who will be contributing to the household bills bring home each month after taxes? Look at your last paycheck stub, ask your HR department, or use an online paycheck calculator to calculate this amount. Make a list of your household’s recurring monthly expenses. This should include bills you pay every month and bills you only pay some months—like car insurance. If you don’t already have a way you’ve been tracking your budget, look at your checkbook, your bank statements, and your credit card statements to help figure out what you’ve been spending. Note which expenses are optional and which are necessary. Make a list of expenses that you will add to when you become a homeowner. Expenses you’ll have that you didn’t have as a renter include water, trash, and home maintenance. You’ll also pay property taxes and hazard insurance. If you’re moving further from your job, your transportation costs may increase as well. If you’re going to make a downpayment of less than 20%, you’ll have to factor in the monthly cost of private mortgage insurance (PMI). Remember, it’s best to estimate high when planning your budget just to be on the safe side. I can refer you to a local lender who can help you with these steps. Determine how much you will have left after expenses to spend on housing. A lender can help you determine your maximum monthly payment by calculating what they call a debt-to-income ratio. Basically, this is what gets paid into the home versus what gets paid out on a monthly basis. Once you’ve determined your household budget, you should have an idea of what you’re comfortable paying on a monthly basis for a house. Don’t forget to leave room for emergencies, retirement, or whatever else you want to save for. In other words, count savings as a non-negotiable expense. Figure out how much house you can buy. The No. 1 way to truly know what your budget will allow for on a house note is to sit with a mortgage lender and have them look at your credit score and finances. A great lender will be able to help you figure out what your ‘no-more-than’ amount should be, which will determine which price points you should shop in. As a Realtor, I can help guide you to a local lender who will be an expert in these areas. If you have any other questions about this topic or you have a topic in mind you would like to see me discuss in a future video, please don’t hesitate to give me a call. I’d love to hear from you! Contact Us   Written by Ruby Miranda on September 23, 2018. Posted in Buy A Home, Buyer Tips, Financing A Home, First Time Home Buyers, Home Loan ProcessTags: Buy Your Home, Buyer Tips, Clifton Saunders, Financing A Home, First Time Buyer, Ruby Miranda Trackback from your site. Leave a Reply    

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