How To Save for a House in One Year
Saving for a house can be very intimidating for most future homeowners. The average
price of a home in Michigan purchased by first-time home buyers was $266,000. Likely,
that’s more money than you’ve ever spent in your life on anything. So where can a first-
time home buyer begin? Integra First Federal Credit Union has prepared these tips for
learning how much you can afford and how to save for your home in one year.
price of a home in Michigan purchased by first-time home buyers was $266,000. Likely,
that’s more money than you’ve ever spent in your life on anything. So where can a first-
time home buyer begin? Integra First Federal Credit Union has prepared these tips for
learning how much you can afford and how to save for your home in one year.
With some smart planning, help from experts and close monitoring of your spending
habits, the first home of your dreams may not be as out of reach as you think.
Learn How Much House You Can Afford
To begin your home buying journey, you need to learn your range of affordability.
There's nothing worse than searching for your dream home and realizing too late that
you ended up looking at homes you can't actually afford. One important point to keep in
mind is that just because a mortgage lender says that you can take out a mortgage for a
certain amount, doesn’t always mean that you should. To avoid this common mistake,
Integra First Federal Credit Union offers various tools to ensure you know how much
house you can afford ahead of time.
There's nothing worse than searching for your dream home and realizing too late that
you ended up looking at homes you can't actually afford. One important point to keep in
mind is that just because a mortgage lender says that you can take out a mortgage for a
certain amount, doesn’t always mean that you should. To avoid this common mistake,
Integra First Federal Credit Union offers various tools to ensure you know how much
house you can afford ahead of time.
For a quick way to plug in numbers, run current Integra First Federal Credit Union home
loan rates, against a Home Loan Affordability Calculator. To ensure you meet your
financial goals, you will first need to establish a down payment budget. Keep in mind
your timeline for this budget. If you want to save for your first house in 12 months, you
must represent that in your spreadsheet. It’s also important to consider the length of the mortgage loan you feel comfortable paying off. Consider the 12/25 rule of thumb: a 15-year fixed-rate mortgage should make up no more than 25% of your monthly income.
Seek Help From a Michigan or Wisconsin Financial Advisor
For assistance with sticking to your budget and ensuring your budget is set up to
realistically save the amount of money needed within your timeline, contact a local
Michigan or Wisconsin financial advisor. They can provide you with helpful tips on how
to improve your chances of being able to save for your first home. They can introduce
areas where you can trim your spending and point out the amount you should aim to
spend on specific categories (e.g.: clothes and food) so you can reach your goal within
your target timeframe.
realistically save the amount of money needed within your timeline, contact a local
Michigan or Wisconsin financial advisor. They can provide you with helpful tips on how
to improve your chances of being able to save for your first home. They can introduce
areas where you can trim your spending and point out the amount you should aim to
spend on specific categories (e.g.: clothes and food) so you can reach your goal within
your target timeframe.
If this will be your first home mortgage, financial advisors may be even more useful to
you. Consider your advisor as a first-time home buyer guide for all your questions along
the way. Some financial institutions, like Integra First Federal Credit Union, offer special
first-time home buyer programs, which offer discounted home loan rates.
Pick the Ideal Mortgage Lender for You
The benefit of having a mortgage loan through a credit union is they often offer
members favorable interest rates on home loans, in comparison to banks or other
members favorable interest rates on home loans, in comparison to banks or other
lenders. Choosing the right mortgage lender to stick with you throughout this exciting
process is a crucial step in the home buying journey since they can expertly guide you
toward the most reasonable rates and things to watch out for during the home loan pre-
approval.
process is a crucial step in the home buying journey since they can expertly guide you
toward the most reasonable rates and things to watch out for during the home loan pre-
approval.
If you're in a time crunch, you are going to want to get most of the busy work out of the
way early on. If you want to appear more serious to those selling their homes, you
should first secure a mortgage pre-approval. This also benefits your lenders because
they will now have all the information needed for when you decide to apply for a home
loan. In addition to ensuring your credit score is mortgage-worthy, a lender will ask you
for information including but not limited to your social security number, employment
details, bank account numbers, tax returns from the past two years and your intended
down payment.
Utilize a High-Interest Savings Account
All the money you’re saving for your new house needs a safe place to grow. While most
people have a savings account, trying to save for your home down payment within a
year requires a higher interest rate option. Integra First Federal Credit Union offers
Certificate accounts for a high-rates savings option. Typically, a traditional savings
account will offer a very low interest rate (less than 1%), while a high-yield savings
account or Certificate of Deposit (CD) can provide a significantly higher rate. For a
better idea of how much money can grow in your savings account, use a Compound
Interest Calculator.
people have a savings account, trying to save for your home down payment within a
year requires a higher interest rate option. Integra First Federal Credit Union offers
Certificate accounts for a high-rates savings option. Typically, a traditional savings
account will offer a very low interest rate (less than 1%), while a high-yield savings
account or Certificate of Deposit (CD) can provide a significantly higher rate. For a
better idea of how much money can grow in your savings account, use a Compound
Interest Calculator.
Buying a house in Michigan can truly be within reach for many if you plan for and are
dedicated to saving and being financially responsible. At Integra First Federal Credit
Union, we are here to help you navigate all of life’s milestones, including buying your
first home. Contact us or visit a local branch today.