Buying your next home in Dothan, AL, but having trouble saving money? At Wiregrass Real Estate, we believe that saving money shouldn’t be as complicated as everyone thinks. Straight from the expert, Bobby Dean, with 20 years of experience, here are some must-follow tips below!
Decide on a Down Payment
If you have an estimated price range on your target home, calculate how much you should be saving for a down payment. Depending on your mortgage loan, you can buy a home for as low as 3% down if you qualify for a conventional loan. But if you opt for government-backed loans, you can save for 3% or less.
However, the condition for a mortgage would depend on your credit score standing, debt-to-income ratio, and the overall status of your financial situation.
Figure Out Your Ideal Timeline
How many years do you think you should be saving to buy your next home? You can choose from as early as one year to as long as five or ten years - but make sure you stick to the savings plan.
Invest in High-Yield Savings
Wondering where to put your money? According to financial experts, high-yielding savings accounts like CDs would be the best. It’s highly liquid and less risky. Depending on your term, you can get around 0.55% to 1.00%. If your term is five years, the usual interest rate is 0.80% to 1.00%.
Follow a Strong Budget Plan
Budget, budget, and budget. Most people feel like budgeting is like self-punishment, but think of it as your stepping stone to get your next home! You can find plenty of effective budget templates online.
Automate Your Savings
If you’re prone to impulsive shopping and buying things you don’t need, automate your savings by contacting your bank to automatically deduct a certain amount to another bank account specifically dedicated to your savings.
Are You Ready to Move to Dothan, AL?
Dothan is a great place to move in with lots of affordable homes! If you’re planning to move in soon, please do not hesitate to reach out to Wiregrass Real Estate. To speak with a member of our team, just give us a call at (334) 701-1102 or contact us online.