The day you buy a house is without a doubt one of the most monumental days of your life, but the path leading to that day might not always be easy. We all know the situation: you are caught in a seemingly never-ending circle of trying to save for a mortgage while simultaneously forking out rent every month for your current place of residence. Following these tips is the best way to ensure you will meet your mortgage saving goals while renting.
Minimize Excess Spending
It is the start of a new year, which means it is a great time to start a new year resolution to minimize your excess spending. Fast food, shopping, coffee shops, and other unnecessary indulgences can mean massive hits to your bank account. These expenses can save you hundreds of dollars each month and can even lead to a healthier lifestyle.
Eliminate Credit Card Debt
Paying off credit card debt will help you boost your savings as well as improve your chances of qualifying for a mortgage when the time comes. While spending your money on debt seems illogical, the money you would be paying towards high interest rates will go directly to your savings account. Additionally, eliminating debt can improve your credit score and lower your debt-to-income ratio, which can greatly enhance your chances of receiving a first-rate mortgage loan.
Keep Your Raise and Bonus
When designing a savings plan, raises and bonuses are two forms of payment that are not initially included, but do not let that sway you from incorporating them as they come. While raises and bonuses are definitely something to celebrate, consider taking this extra income straight to the bank. Rather than increasing your spending budget, continue living modestly in efforts of cutting your timeline down or even extending your savings goal. By saving this additional income, you will either be able to buy a house quicker or buy an even better house than you imagined.
Cut the Cord on Cable TV
It’s 2019, I think we can finally admit that cable television has lost its place in this technological advanced world. With Netflix and Hulu available as leading entertainment providers, there is little room for cable television in the entertainment business anymore. Not to mention, Netflix and Hulu are significantly cheaper options compared to cable. So, if you are trying to save for a mortgage while renting, reach your goal by finally cutting the cord on cable and switching over to online streaming services. You will be able to save a generous amount of money without forfeiting your favorite shows and movies.
If you are interested in more tips for saving money while renting, or want to get started on your mortgage application, please contact Ken Venick today. I am experienced in getting homeowners the best possible mortgage product for their situation. Since every client is in a different situation, I encourage you to get in touch and learn how I can help. Contact Equity Mortgage today by calling 443-471-4310. I look forward to hearing from you!