You tired of paying rent and you ready now to move into your own home. First you need to set up a budget. Below are some of the steps that will help you move in into your dream home.
Set up a target and a date
First decide on when do you want to move into your own home is it 1 year few months.
Secondly make sure that your goal is not too ambitious. Once you have come up with a date the next thing is to come up with a target how much money do you want to spend on your home, and how much can you afford.
Make a list.
Make a through list of all cost from the start to end of the whole project. This could be like;
- The purchasing price- How much is the property going for, and how much will you give as a down payment.
- Survey and site preparation fees- This includes site visits, travel expenses record searching
- Utility access fees- This are permits for construction installation like wire lines, pipelines for sewer and fiber cables.
- Legal fees for project processing documents- When constructing, you will have to be approved by the construction authorities in Maryland and have an architect who is certified.
- Moving expenses – Set aside money for moving day.
- Construction both materials and labor cost.- Work with your contractor so, you can be able to understand what exactly you paying for.
Your list of expenses will be much longer than this depending on the type of home you want to own. If not put down they could cause delays and costs overruns.
Start saving for your down payment.
Depending on when you want to move in, you will need to save half of your income in order to get closer into moving into you own house. This means if you looking at saving for, down payment you need to strengthen your credit card score.
If you looking at getting bank financing for, your home you need to cut on spending. Keep the savings in different saving accounts and, probably a different bank that you don’t have to be tempted to use the money and having to go back to square one.
Pay down your debts
Any small debts on credit cards ,car loans, and student loans normally they decrease your credit card score. One of the factors the financial institutions look at, is the income to debt ratio basically how much income you make verses how much debt you have. They want the percentage of, your debt not to exceed a certain percentage in your gross income. So you will need to pay much of that debt so you not on that line of low percentage that cannot allow you to save for the house.
Shop around for the best rates.
You take time to look for the best interest rates available. An interest of 6% and that of 5% can save you a couple of dollars so, do not accept rates that you find on your local bank because you bank with them, always keep looking for the best interest rates on other different places you will be ,surprised on the rates they will have to offer so don’t be afraid to shop around.
Account for new regular expenses
After covering households expenses, water bills, electricity bills there are some of other expenses that come with home ownership.
Security services if you happen to live in a planned neighborhood.
Home maintenance and, upkeep taking care of repairs, and repainting your house every end of year and putting in new designs, planners advise to set aside 1% or more value every year for upkeep.
Home owners association fees, you likely to be a part of homeowners association which comes with dues that cost a bit of money every month.
After, owning now your home you will have to revisit your insurance plan, and add few things on it, like fire outbreak, emergency funds to cover your living expenses, life insurance you want it cover all your life mortgage in the event of death. You want all that looked into when you move into your own home.
Finally Surround yourself with a team of professionals.
Having a real estate agent, will help you in guiding on some of the things that you don’t know well about. He may have access to contacts of good lenders, and may help you be pre-approved to a mortgage and guidance on what you can afford before you head out to house hunting.