Prospective home buyers, here's how to budget smartly to make your dream home a reality:
1. Assess Your Finances: Start by understanding your income, expenses, and debts. Use a budgeting tool or spreadsheet to track your spending. For your free user friendly budget excel form, email Tonia@themortgagemissus.ca
2. Determine Affordability: Use online calculators to estimate how much house you can afford based on your income, debts, and down payment. Access the only app you need Here
3. Save for Down Payment: Aim to save 5 - 20% of the home's purchase price for a down payment. Set up automatic transfers to a dedicated savings account to make saving easier.
4. Reduce Debt: Pay down high-interest debts like credit cards. Lower debt levels will improve your debt-to-income ratio, making you a more attractive borrower.
5. Build an Emergency Fund: Save at least three to six months' worth of living expenses in an emergency fund. This will provide a financial cushion during the home buying process.
6. Cut Unnecessary Expenses: Review your spending and cut back on non-essential expenses. Redirect the savings towards your debts and down payment fund.
7. Boost Your Income: Consider taking on a side hustle or asking for a raise at work to increase your income and accelerate your savings.
8. Get Pre-Approved: Once you're financially ready, contact Tonia@themortgagemissus.ca to get pre-approved for a mortgage to understand your buying power and show sellers you're a serious buyer.
By following these steps and staying disciplined with your budget, you'll be well on your way to buying your first home.
Contact The Mortgage Missus Inc. today to learn more!
Tonia Mercer | The Mortgage Missus Inc.
About the author,
Tonia Mercer is an independent mortgage broker. She has been in the industry for 15 years, in 2021 she launched her own brokerage The Mortgage Missus Inc.Â
Tonia is passionate about financial education and believes that working with independent experts is the best way to get unbiased, professional advice. She has joined forces with local independent home and auto, financial advisor, legal, appraiser and real estate service providers.Effectively creating a concierge service for all things financial and real estate.
Tonia donates a portion of all mortgage revenue to Mercer's Mission, a street dog and cat feeding mission in the Dominican Republic. https://www.facebook.com/mercersmissionÂ
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