6 Things First Time Buyers Can Do Now to Start Saving for a Home

by Robin Tanner 12/15/2019

Buying your first home is a big endeavor, both financially and personally. Homeownership means taking on new responsibilities and bills, but it also means true financial independence.

If you’re hoping to buy a home in the near future, you might be wondering what you should be doing now to put yourself in the best position when it comes time to buy a home. Well, you’re in luck. Today’s post is a simplified list of all of the things you can be doing today to start making your way toward your ultimate goal of homeownership.

1. Pay off small debts

The first thing you’ll want to do to start saving for a down payment is to make sure you’re not pouring money down the drain to credit card companies for interest rates. If you owe small amounts of money (or less than $1,000), now is the time to aggressively pay down those debts.

The goal here is to get your credit cards to a place where you pay off your balance in full each month, avoiding interest while still earning rewards and building credit.

2. Speaking of credit…

One of the most important aspects of buying a home is your credit score. Take the time to learn about the 5 main things that contribute to your credit score and then work on ways to improve your score in those areas.

3. Don’t open any new accounts if you can help it

Once you start getting closer to applying for a mortgage, you won’t want any new inquiries on your account that are temporarily lowering your score. If you need to open a new account to lift your score, then do so well in advance of applying for a mortgage.

4. Get serious about saving for a down payment

There are a few ways to proactively save for your down payment; none of them include setting money aside when you feel like it. Start by opening a dedicated account and direct-depositing a portion of your pay into that account each week.

If you have an emergency fund in place, you might be in a position to use a CD or certificate of deposit. These give the highest earnings from interest out of any form of savings. The catch? You can’t withdraw from the account until you reach your savings goal without a penalty. If you know you won’t need to dip into these funds before they’ve matured, a CD is an excellent way to save.

5. Find out how much house you can afford

Homes are expensive. but, if it’s your first home, you might need to borrow the maximum amount form the bank to find a house that you’ll love. To find out what is a reasonable amount to spend on a home, you’ll need to consider your monthly mortgage, bills, taxes, insurance, and any other expenses. Leave yourself room for savings, emergencies, and to live a little. You won’t be able to enjoy your home much if you have to spend your days struggling to afford it.

6. Career planning is vital

A good career is a balance between stability and upward mobility. Don’t be afraid to be on the lookout for new positions with higher pay and better opportunities, even if you’re happy with your current job.

If you’ve been in your position for a while, consider asking for a raise. Research salaries for other people in your position and go to your boss equipped with data to show that show you deserve a raise.

About the Author
Author

Robin Tanner

Robin’s Mission Statement: I am here to help people realize their dreams!!

Robin Tanner has lived in Benicia for over 30 years, and is very grateful to wake up every morning in this beautiful little town. She is your neighborhood consultant, not a salesperson. Because of this you will get all the latest information on schools, neighborhoods and about the town in general. She was a teacher in her past life, making her an expert educator. You can be sure she will help you make the best-educated decision possible when buying or selling your home.

Her love of working with people and helping them find what they want and need, will make this a fun and exciting journey. She has a great team alongside her that can help with your FICO scores and loan approvals as well as helping cross any other bridge you may come to (Short Sales and Foreclosures). Her team helps everyone with all aspects of the buying and selling procedure, and will do what needs to get done to make this a positive experience.

Robin believes that as part of her job she must continue to grow and learn. To achieve this goal, she is always taking classes to advance her knowledge of the Real Estate industry. You will be informed of all new information pertaining to any Real Estate.

She lives passionately and adventurously and is so grateful for all the fantastic clients she has had over the years, many of whom have become great friends! When Robin isn’t working as your real estate consultant, she is enjoying the outdoors while boating, horseback riding or gardening.

Areas served: Solano County & Contra Costa County

Specialties: Residential Properties, Relocation, Luxury Market, Seniors Community,Ranch/Ranchettes, Land, Mobile Homes, Short Sales, Bank Owned, Industrial/Warehouses, Investment Properties, Residential Income

Awards/Achievements:
• Thomas R Stone Associate of the Year 2011
• R.V. 'BUD' Stone Most Inspirational Agent 2012

Education/Work Experience:
• Real Estate Certification
• Certificate for Early Childhood Education
• Certificate for Medical Insurance
• Pre-School & Elementary School teacher
• Landscape Architecture

Community Involvement:
• Soccer coach
• Little League coach
• School Volunteer


ROBIN TANNER
Title: REALTOR® (707) 333-5604
[email protected] English
www.robintanner.com
CalBRE #01509690