Saving for a dream home… the tortuous journey that last

Saving for any specific reason demands you cut down on existing expenses and it is always a difficult time for any individual, however, the excitement of owning a new home should surmount such a thorny period experts say.

The procedure for owning a home is not in any particular order, however, experts advise you stick to some rules to ease your stress and actualise your dream faster. The first step remains the ultimate decision within yourself that you need to own a home and opt for the most convenient procedure for you either through a mortgage loan or an outright buy.

Before saving for your home it is advisable to also have a good knowledge of property prices in your desired area so you know how soon your dream will be feasible considering the amount you are saving to acquire a mortgage loan or to buy out rightly.

This information can be supplied by a realtor, property newspapers, magazines in your local area and online research. A special account is very important because whether you are buying through mortgage loan or paying out rightly you need to save a certain amount of money down. Hence it is advised you subscribe to an account with the best plan for you such as no or low monthly charges, high interest rate especially when you do not withdraw from the account frequently.

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The next step is to calculate how much percentage of your income will be saved within a specific time so that your can your dream home can be a reality soon enough. Also, consider buying a cheaper house if that will ease your payment plan.

The only way to save money is by budgeting and consequently reducing expenses. This is a vital part of your home acquisition process because you need to cut off as many “unnecessary” expenses as possible such as groceries, fuel, utilities, gym, cable, and excessive shopping.

If you choose to buy your new home through a loan facility expert’s advice you contract the pay-back period as much as possible especially if your income is sufficient enough. Though it might be hard to squeeze out a huge chunk of you income to pay back your loan but it saves the excess money and time you would use to service a longer loan facility.

Also, while you calculate how much of your income will be used to repay your loan make provision for a bit more to act as a buffer should interest rate rises.