“ℕ𝕖𝕧𝕖𝕣 𝕘𝕚𝕧𝕖 𝕦𝕡 𝕠𝕟 𝕒 𝕕𝕣𝕖𝕒𝕞 𝕛𝕦𝕤𝕥 𝕓𝕖𝕔𝕒𝕦𝕤𝕖 𝕠𝕗 𝕥𝕙𝕖 𝕥𝕚𝕞𝕖 𝕚𝕥 𝕨𝕚𝕝𝕝 𝕥𝕒𝕜𝕖 𝕥𝕠 𝕒𝕔𝕔𝕠𝕞𝕡𝕝𝕚𝕤𝕙 𝕚𝕥.”
Who likes moving? (no hands raised) Right, me neither.
Even though I’ve done it 11 times in the last 20 years it never really gets pleasant. At least the packing and lugging your stuff across town, across the state, or across the country, then unpacking and settling in all over again has never really been fun.
But this picture below was taken on a good day. Those keys were a great accomplishment.
When I quit my job 4 years ago and we moved to Florida, we bought really conservatively. Sure it would have been nice to roll up in paradise with a big lanai and private pool. But I knew going from two salaries to one would be an adjustment and the last thing I wanted to be, on top of rediscovering who I was without a career, was house-poor.
Don’t get me wrong, I loved the house we picked when we moved here and I’ll be sad to leave it. But what we gained in these past four years has included learning to downsize, focusing on what really matters, being closer as a family, and building equity.
Thanks to being conservative, building that equity, and a deeper relationship with our community that came with time, has led us to this glorious place. It’s not just a bigger, newer house, it’s also in an incredible, earth-conscious, innovative community built on sustainability and ethical growth.
I’m blessed and thankful for patience, perseverance, and family.
If you’re looking to save money for your dream home, here are a few ways to start:
1- Do your research
Look at homes in your preferred area with the number of bedrooms and major features you want. That will give you an idea of how much your ideal home will cost.
2- Crunch the numbers
So many numbers go into buying a house. It’s good to know your credit score and how it will impact the home loan you can get. If your score is weak, start working to improve it ASAP.
And most importantly, figure out how much you want to save for the downpayment.
Conventional mortgages, like the traditional 30-year fixed-rate mortgage, usually require at least a 5% down payment. For a government-backed mortgage like an FHA mortgage, the minimum down payment is 3.5%.
The Street
The bigger the percentage you put down, the more perks you will enjoy. Obviously, the more you put down, the less money you’re actually borrowing. Also, a 20% downpayment will help you avoid mortgage insurance, which adds to your monthly payment. It might also get you a lower interest rate.
But most people don’t put 20% down.
In 2016, the average home down payment as 11% according to the National Association of Realtors. Younger home buyers aged 35 and under, who usually have lower incomes than people in their 40’s and 50’s, put down 8% on average for home down payments in the same time period.
The Street
3. Make it a priority
If you decide to go all-in on saving for a house, go all-in. Make it your primary focus. The thing you think about before you make every purchase, big or small. And make it visual.
If you’ve checked out some of my other savings posts, you know I love charts. They’re a great way to visually see your goal every day, on the fridge, your office wall, or wherever you put that reminder.
This printable Home Savings Tracker can help you track your savings from the first penny to the last. Color or shade in a new line for each deposit you make in your home savings fund.
This is also a great way to break a giant savings plan down into bite sized pieces.
Click here to download and print this Home Savings Tracker.
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