Are you considering buying a home in Seattle?
There's no denying that purchasing a home is one of the most exciting yet terrifying moments in your life.
Financially speaking, buying a home is also one of the biggest investments you'll make throughout your lifetime. Of course, such a significant transaction certainly requires years and years worth is of saving for most prospective buyers.
Fortunately, there are steps that each and every prospective homeowner can take to increase their savings and make home ownership a possibility. This can be as simple as renting a room within your house to prioritizing your spending or even selling unused goods.
If you've found yourself wondering the best way to save money for a house, you're going to want to read this. We're sharing the ten best ways to transform your dream of home ownership into a reality!
1. Prioritize Your Money
First things first, you're going to have to come up with a new and established budget. This sole purpose of this budget is to document where your money is being spent and how to minimize this spending.
In doing so, you will have to cut out certain areas of your lifestyle that tend to be costly. For many, this may include a tendency to eat out, taking frequent vacations, the purchasing of new items and entertainment.
The money saved in reducing these costly endeavors should be invested into a savings account or guaranteed return like a CD or Mutual Fund.
2. Consider Renting a Room
If you currently own your home, why not consider renting a room or another level within your home?
Not only will this help to pay your mortgage, but you can also split the cost of utilities with your tenant. While these savings may seem insufficient at first, the profits are sure to add up on a monthly basis.
This is especially great for any households that are located within a university locale. In this case, there are going to be countless students that are looking to rent rooms on a short-term or long-term basis, just make sure to rent to one with good grades so you know they won't be out late partying.
At the end of the day, this could make home ownership a reality much faster than you had initially anticipated!
3. Sell Unwanted Items
Do you have a haul of once significant items that are no longer being used?
For many, this includes items such as old car parts, unused vehicles, old furniture or anything vintage that may carry a high price tag.
Try hosting a garage sale and you'll be surprised at the profits you may yield. This is also a great way to get rid of unused items before making the leap into home ownership.
For large-scale items, try your hand at selling these online. Places like Kijiji, OfferUp or Letgo generally allow you to advertise at low-costs while allowing you to benefit from 100 percent of the profit.
4. Get a Side Hustle
Sure, your 9-5 job may have been cutting it before you had your mind set on home ownership.
But, if you're serious about buying a home and qualifying for a mortgage, you're going to need all the help you can get. In addition to your regular job, having an income on the side will benefit you when it comes to becoming a homeowner.
In simple terms, the more money that you have coming in each month, the higher a mortgage you will be able to qualify for.
Fortunately, in today's online world, the possibilities for a side hustle are endless. These are often jobs that have the possibility of being high-paying while also creating your own hours. This could be anything from online tutoring to freelance writing or design or even Uber or Lyft.
5. Consider the Potential of Monetary Gifts
For many, the search for a home comes shortly after a significant event such as a wedding.
In this event, don't be shy in letting your guests know that you are in the stages of purchasing a home and monetary gifts are appreciated. While it may seem forward, your guests will appreciate knowing that their gift to you is going toward something as significant as a home vs that shiny new toaster.
In the event of a wedding, monetary gifts tend to add up very quickly and can be very effective in helping to formulate a downpayment.
6. Take Advantage of Specialized Programs
Here in Seattle, there are a number of programs that can help you reach the goal of home ownership.
Before delving into your home buying experience, be sure to familiarize yourself with how you might benefit from the many programs available.
For example, if you are a first-time homebuyer, you can benefit from programs that help to make ownership more attainable. There are also a number of programs available that help to provide down payment assistance.
Of course, there are various requirements that must be met in order to benefit from these programs. To learn more about these programs, be sure to contact your local mortgage agent.
7. Pay off Credit Card Debt
The truth is, it's hard to save money when you owe a significant amount to someone else. If you're anything like the average American who carries $38,000 worth of debt, you know exactly what we're talking about.
Before you can start saving, prioritize your debt and try to pay it off as quickly as possible.
First, focus your attention on paying off your debt with the highest interest rates. Once this debt is paid off in full, you can transition your attention to the next debt. Slowly but surely, by focusing your attention on these debts, you can minimize your amounts owed and then begin to focus on saving.
8. Minimize Your Household Vehicles
If you're a family that benefits from two cars, it's always a good idea to lose one car.
The fact of the matter is that driving and maintaining a car is expensive. Between monthly payments, insurance costs, maintenance fees, and rising gas prices, the costs certainly add up. In fact, that the average cost to maintain a car in America is close to $8500 per year.
Do yourself a favor and ditch the car and opt for public transit. This is bound to save you several thousands of dollars and minimize the amounts of money owed each month.
9. Inquire About a Pay Increase
Have you been working for the same company for years? Have you been managing a higher volume of work than in the past? Are you responsible for any new avenues in your job?
Remember, one of the most significant factors in getting a mortgage is decided by your salary. The higher your overall salary, the more mortgage you will be able to qualify for.
That being said, don't be shy about asking for a pay raise! To put things into perspective, the average pay raise in 2019 is expected to be approximately 3.1 percent. Use this to your benefit!
Do your homework beforehand and be sure to stipulate the exact reasons that you deserve a pay increase. If you feel that your workload hasn't significantly changed, state that you feel confident in taking higher volumes of work in exchange for a pay increase.
10. Purchase in the Off-Season
Of course, there's no denying that the Seattle real estate market is hot! It's safe to say that there's never been a better time for sellers and the competition is fierce for buyers.
But, even in such a hot market, there are certain times of the year that tend to be slower than others. For many, the slower season tends to be in winter and especially around the holidays.
At this time, a large number of buyers are looking to take a break from their home search and enjoy the holidays. From here, the usual plan is to transition back into the home search come the new year.
If you're serious about your home search, this is typically one of the best times for buyers. Not only is there less competition, but many sellers also desire to have the home sold and wrapped up in time for the new year because of tax purposes.
This is the best time to get a great deal and avoid the crowds!
The Best Way to Save Money for a House in Seattle
If you're feeling stressed financially, it doesn't always mean that you have to abandon your homeownership dreams. Instead, it just means that you may need a little guidance on how to save for your dream home.
The good news is that with these tips and tricks, home ownership doesn't have to feel like such a long-term thing. In fact, with the right financial preparation, home ownership may be just around the corner.
This may be anything from paying off your credit card debt and getting a side hustle to minimizing your expenses and purchasing a home in the off-season.
At the end of the day, the best way to save money for a house is to plan ahead. If you make an effort to commit to these tips beforehand, you're certainly putting yourself in a favorable position for soon-to-be homeownership.
Another important aspect of preparing yourself for an eventual home purchase is to familiarize yourself with mortgages. To learn more about the different types of mortgages and which one is best for you, click here.