Once you decide to buy a home in Denver, it is important to make all changes necessary to save for your down payment and additional expenses. Upon working with an agent and lender, you will have the roadmap you need to create a timeline so you can save up for all the necessary expenditures. Once your budget is set, it’s only a matter of patiently adhering to it to reach your ultimate goal of homeownership! Learn about how to set a budget to buy a home, places to make cuts, and additional tips throughout the process.
Set Your Budget
When working with your local real estate agent and lender, you will go through everything Investopedia lays out in their five things you need to be pre-approved for a mortgage
. This will help you know the max amount that you are qualified for to buy a home. From there, you need to choose your own maximum budget that has a monthly payment that is feasible. In addition to learning your optimum mortgage amount you will also need to factor in additional costs such as: HOA fees, property taxes, and more. Once you have your home price, you can work with your agent to see what the down payment will be on your home. Take this number and create a monthly savings plan.
While you adjust your budget to account for the needed savings for a downpayment, it is also important to evaluate where you can make cuts to your already existing budget to further help you save. First, look at weekly expenses. Do you have several trips to get coffee? Are there any monthly subscription services you do not use often? Are there additional monthly expenses for items or services that you pay for and don’t use? Or services you can ultimately go without? It is important to identify these items early and re-allocate those funds to your down payment savings.
To help you save, put your down payment savings in a separate account. Some banking services have accounts that limit the amount of times you can take out money without a penalty. If your bank offers an account like this, it is great to take advantage of to help you avoid dipping into the savings. Also, to help you get accustomed to your mortgage, begin making payments to see what it will be like. You can take this money and put it into your down payment savings account to help it go towards your goal. If you have never purchased a home before, be sure to review our guide from Denver realtors on buying your first home
To help you create your savings road map for your down payment, Giving Back Group can help. We will help every step of the way to help you with your budget, and finding the perfect home for you. We will also donate 20 percent of our commission to a charity of your choice, in your name, at no additional cost. We know you care about your community and love the opportunity to help you make a difference. To get started, call us today at 303-881-4881.