Homeowner is a coveted titled in these times, and I will be looking into adding it to my list of accomplishments this spring. Every matter must be in order, such as my credit report and down payment before delving into this adventure.
Last year I attempted to buy a home. Unfortunately, I started the preparation process in the middle of spring instead of at the beginning of the year. I was about place a down payment on a home when I lost it to another buyer.
I had only reviewed one of my credit reports and not all three of them. One of the reports showed me behind on a credit card debt that I thought had been resolved. Between interest and the added costs from having the account sold to another party, the debt had accumulated to a healthy amount. I had to use a part of the money that I had saved for down payment to pay off the debt.
I made arrangements to borrow the money needed from a family member for the remainder of the down payment. However, by the time I got the money together, someone else had placed a down payment on the property. The fact is that I was not totally prepared. The other person was. Therefore, they got the house.
Credit is a major issue when purchasing a home. I am going to order my credit report from the three major credit bureaus. This will show me if there are any debts that I have paid off that still show as owing. If so, I will have them corrected. I am also going to see if I have any past due debts that I did not know about so that I may pay them off.
I am going to price houses in the area where I want to live. I am not looking for a big new house, so my price range will be low. I have found a few houses that I am interested in that range from $40,000 to $55,000. For this price I can purchase a home with between 1,000 to 1,500 square feet sitting on a lot that is between 4,000 to 4,800 square feet. I must also calculate homeowner’s insurance and property tax into the equation. At this point I have saved up about $3,000 for a down payment and still have a few thousand left to save.
I have looked at my budget and determined that I need to cutback my spending in several areas. It is amazing how much a family can spend in fast food and eating out in just one month. That cost will be cut drastically. Also, any unnecessary spending at department stores will be cut out.
Unnecessary items bought while grocery shopping will be cut as well. I am making a strict shopping list and sticking with it. With the cost of gas the way it is, I will be cutting out any excess driving for a while. All of the money saved will go directly into my savings account. By cutting all needless spending, my family could save well over $600 per month.
Being a homeowner is almost a title of honor in these times. Therefore, if I want to attain this coveted title and all of the benefits of home ownership by spring, I need to buckle down and start working toward it now.