Buying a home is everyone's dream, but the reality is that you have to save for the down payment, make regular monthly payments without sacrificing on your emergency funds or other needs, find a home that fits your budget, and above everything, qualify for a home loan with a lender!
Though this may sound overwhelming at first, rest assured in the fact that hundreds of people buy a home every day, so your dream is definitely well within your reach provided you plan well for it. According to the U.S census bureau, 12.4% more people are buying homes in 2019 when compared to 2018, and this number alone goes to show that people are pursuing their American dream and you can too, with just a few tweaks to your routine.
Here are a few ways to save for your dream house without having to sacrifice your savings or your social life, for that matter!
Make the most of available benefits
If you're a first-time homebuyer, you have many opportunities to save. Though traditional wisdom states that you have to put down 20% of your home's value as the down payment, you can get away with this stringent stipulation if you qualify for some government programs. The USDA, for example, has a list of schemes for home buyers, so as a first step, check if you qualify for any of these benefits.
Plan your finances well
Though buying a house is important, having an emergency fund is even more important. Make sure you put all your savings towards this fund first and once you have a reasonable amount, move on to saving for your home. Ideally, this emergency fund should cover your living expenses for a minimum period of six months.
Make small changes to your life
Let's be clear here. You'll have to save money to buy your dream home, but at the same time, you also have to live your life. So, there is no point in saving every penny at the cost of your physical, mental, social, and emotional life. This means you have to strike a balance between saving and leading a happy life and the best way to do that is to plan your fun within certain boundaries. For example, you can invite friends over to your place instead of hanging out at a fancy restaurant or pub. Maybe everyone can bring a dish and you can all spend quality time together for as long as you want. Also, you can go running for a few months instead of an expensive gym membership. These small changes can help you to save that little extra money to buy your dream home without sacrificing the fun things in your life.
Look for suggestions from the right sources
Every individual is different, so what works for one may not work for another. Instead of trying to fit into a defined structure, consider home buying advice from different reliable sites and collate the ideas that would work for you. This way, you'll have a realistic plan to save.
While this is not an exhaustive list, we hope these suggestions help you get started on the journey to buying your dream home.