• April 21, 2018

Making the Dream a Reality

JOSEPH-LEWKOWICZ,3

Making the Dream a Reality

When you have a good job and no debt, it’s always a good idea to sell your home and begin shopping for your dream house, but how do people get to this point? There are a million reasons why you can’t buy a house, but problems like bad credit, debt, or no cash for a down payment can be eliminated.

1. Get Creative

There are millions of ways to save. You must be willing to sacrifice for your long-term goal. When you’re thinking of buying a house, you need to cut back big payments like the payments you’re making on vacations.

You might want to consider moving back in with the parents. No, it isn’t ideal, but it’s only temporary and cutting the cost of rent and utilities can save you a huge amount of money.

Another way you can save is setting aside money whenever you get a paycheck. Your bank should be able to do this automatically by depositing a specific sum into your savings account when your paycheck clears. Make sure the money you’re setting aside is separate from your spending and don’t touch it unless you need it.

2. Earn More Cash

The more money you bring in, the more you can save, the faster you can sell your house and buy your dream home.

We had to bring the parents in again because they are a great source of added income. Each parent can “gift” money to a child every year, tax-free. The current allowed amount is 14,000 dollars per year per parent. If you’re married, you can double that to more than $50,000 a year.

If you have the extra space looking for roommates is another way to save or gain extra income.

Another thing you can do to earn little extra cash is getting a second job. A small part-time job can quickly build a nice down payment.

3. Focus on Building Credit and Lowering Debt

Better credit is going to give you a better mortgage interest rate, which will give you more buying power. Cleaning up bad credit takes time, so you will need to plan, but it will be worth the time and effort.

The lower your debt, the stronger your debt-to-income ratio. You can keep this ratio down by paying down your credit cards. Also, avoid making big purchases like a car before buying a home and remember that your student loans count against you.

4. Remember What you can Afford

If you’re starting out, you don’t have to buy your dream home. If that’s just not possible at this moment, then forget the dream home and buy within your budget. You can build up to your dream house later in life.

You can also look at transitional neighborhoods. Buying in a transitional area will let you buy a perfectly good house that will gain more value as time goes on. If you’re unsure which areas are likely to improve, ask a real estate agent.

Everyone has a picture of where they want to live but getting there is harder than we might first anticipate. Saving money, reducing your debt, and revising that vision are all great ways to eventually buy the home you want.

Stress is one of the largest concerns when selling a home. Staging, managing finances and documents, and simultaneously juggling the rest of your life can be completely draining. However, one thing is certain about selling your home: it’s a lot easier when you have a solid real estate agent to handle it. Remember, No-One Works Harder to Sell your Home more than Joe! Contact Joe today by calling 813-701-2030 or visit https://josephlewkowicz.com/