Home ownership is the American dream. Many people know that they want to own a home one day, but don’t have a concrete strategy to one day become a homeowner. If you’re one of those people with a goal of buying a home, here are a few tips that you can use to turn your lofty goal into a reality:
- Determine Your Needs: Calculate your savings goal by finding out the average cost of a home similar to one you would like to buy and figuring a down payment of 15-20%.
- Consider Investing: If it’s going to be a while before you need your down payment, grow the money you have saved by investing it in a diversified portfolio.
- Make Budgeting Decisions: The less you spend, the more you can save. Make some sacrifices now in order to put more into your down payment fund – all those little savings will add up!
- Consider Using Your IRA: For any other expense, tapping into your traditional or Roth IRA is a no-no, but you may be able to take money out of these accounts tax-free for use as a down payment.
- Put “Found Money” to Work: Whenever extra money comes your way (whether it’s from a weekend job or a birthday gift) put some or all of it toward your future home.
And when it’s finally time to use your down payment and buy your home, remember that Vargas and Vargas Insurance Agency is here to help you with your homeowner’s insurance policy. Just call 617-298-0655 for a free, no-obligation quote.
