Aug. 18, 2022
If you want to buy a home, you need to be able to responsibly save and manage your finances, and that comes down to having the right habits.
So what, exactly, are the “right” habits if you’re trying to buy a home?
A recent video from realtor.com outlined the habits you’ll want to adopt if you’re planning on buying a home in the near future, including:
- Set up weekly deposits. As mentioned, the quicker you save up for your down payment, the quicker you’ll be able to buy your home. If you want to speed up the process, set up a separate account for your down payment—and then set up an automatic weekly deposit. That automatic withdrawal will get you in the habit of saving, without requiring too much thought or effort.
- Pare back your budget. When you buy a home, you want to have as much saved for your down payment as possible—ideally 20 percent. And in order to stash away that much cash, you’re going to want to pare back your budget. Look for ways to cut down your expenses (for example, by getting rid of cable or switching to public transportation)—and then put those savings directly into your down payment savings account.
- Check your credit score. If you want to buy a home, you’ll need a solid credit score. Before you start looking at homes, get in the habit of checking your credit score. Make sure there’s no incorrect information that could be hurting your score—and, if there is, contact the credit bureaus to get it removed before you put in any offers.