• Gold West Financial

How To Save For Your First Home

A house could be the biggest acquisition you could make (unless you're interested in real estate of course). Oftentimes, many underestimate the costs of securing a house, particularly when it is their first. Across the internet, you'll find thousands of articles on this very topic but out of all of the advice out there, there are four steps to save for your first home that most would agree are the best way to go about it.

1. Draft Your Budget

It is commonplace to come across the promise that your monthly payment (upon the mortgage purchase) would be lower than the rent you're currently paying. Alright, that could be true, but there are a lot of carefully veiled expenses to be incurred during the process, and what's more, owning a home comes with additional costs.

Upon the purchase of a house, you'll have to pay a loan origination fee, estate agent's fee (if applicable), insurance fees and closing costs. This could take an astronomical rise when you consider the extra furnishings you might have to come up with.


Consider using percentages to draft your budget. Your entire monthly payment would be healthy to stay below 28% of your gross earnings monthly.


2. Decide The Home That Suits Your Needs

Single-family home: This is, of course, the cheapest home you can buy. A single-family home will just be ideal for you and your family, especially if you're not big on vast spaces. However, this home type comes with a long list of additional expenses.

Multi-family home: Perhaps you have an eye for investments or are going to live with a friend's family––then this would be the ideal choice for you. Your family could live in any of the units while you rent out the other units––provided you have the cash to acquire a multi-family home. Through rents, you can earn passive income that could cover the entire cost of your mortgage payments. Bingo.


3. Determine Down Payment

What percentage are you going to put down? Typically, you'll see people putting at least 20% down. With this rate, you're likelier to be approved for a mortgage at a lower interest rate as well as enjoy a lower monthly payment. Anything lower would increase your long-term expenses.

There are special packages exclusively for first-time homebuyers. Some of these programs could allow you to make a lower down payment while some could even grant you a mortgage with no down payment at all. The Federal Housing Administration (FHA) offers a very common low down payment program.


4. Earn More, Save More

Having had a budget, decided on what you want, and settled your down payment, it is necessary to earn more and save more. Simple logic, we suppose, but how?


You may need to change your job or obtain a pay raise if your budget requires you to. Sometimes even a job change is necessary (purely for the financial improvements). Or you could secure a side hustle to earn more.

To save, cut down on surplus expenses (such as transportation fees and excess entertainment); live on one income if possible.


Overall, owning your first home is not as difficult as it appears, provided you're properly prepared. For more information, you can always reach out on how to save for your first home.


Gold West Financial is your source for debt resolution solutions -- bad credit OK. Ask us how we can help by giving us a call at (855) 200-0586 or apply online today!

ONLINE APPLICATION | CONTACT | PRIVACY POLICY

Tel: +1-855-200-0586 | Em: info@goldwestfinancial.com

© 2019 Gold West Financial LLC | All Rights Reserved.

Please note that all calls with the company may be recorded or monitored for quality assurance and training purposes. We do not charge any fee or cost to submit a loan request. The actual loan rate depends on the loan amount and term requested, as well as your credit score, usage, and history. If you are offered a loan, you will have the opportunity to review the final offer made by lender or lending partner, and to accept the loan agreement made directly between you and the lender or lending partner. The lenders and lending partners we work with may charge an origination fee for facilitating the loan to you.

We do not charge any fee or cost to submit a loan request on EvenFinancial.com. The actual loan rate depends on the loan amount and term requested, as well as your credit score, usage, and history. If you are offered a loan, you will have the opportunity to review the final offer made by lender or lending partner, and to accept the loan agreement made directly between you and the lender or lending partner. The lenders and lending partners we work with may charge an origination fee for facilitating the loan to you. For example, on a $10,000 loan with a 5% origination fee, you will incur a $500 origination fee and receive $9,500 upon successful issuance of your loan. Please note, our lenders' and lending partners' privacy policy and security practices may differ from Even Financial standards. Even Financial assumes no responsibility, nor does it control, endorse or guarantee any aspect of your use of the linked site.

Representative Example: If you borrow $5,000 on a 36-month repayment term and at a 10% APR, the monthly repayment will be $161.34. Total repayment will be $5,808.24. Total interest paid will be $808.24. APR Disclosure: The Annual Percentage Rate is the rate at which your loan accrues interest. It is based upon the amount of your loan, cost of the loan, term of the loan, repayment amounts and timing of payments and payoff. By law, the lender or lending partner must show you the APR before you enter into the loan. States have laws that may limit the APR that the lender or lending partner can charge you. Rates will vary based on your creditworthiness, loan size among other variables with the lowest rates available to customers with excellent credit. Minimum and maximum loan amounts and APRs may vary according to state law and lender or lending partner. We recommend you read the lender's and/or lending partner's personal terms and conditions in full before proceeding for a personal loan.

Even Financial, Inc. is the technology platform powering financial services online. Even's API enables its partners to connect their users with real-time decisions and personalized offers and rates from premium financial services providers. Even Financial offices are located at 43 W. 24th Street - 5th Floor, New York, NY 10010, Telephone number: (800) 614-7505. This site is directed at, and made available to, persons in the continental U.S., Alaska and Hawaii only.

APR Disclosure: The Annual Percentage Rate is the rate at which your loan accrues interest. It is based upon the amount of your loan, cost of the loan, term of the loan, repayment amounts and timing of payments and payoff. By law, the lender or lending partner must show you the APR before you enter into the loan. States have laws limiting the APR that the lender or lending partner can charge you. Rates will vary based on your credit, loan size and whether collateral is provided, with the lowest rates available to customers with good credit on larger, secured loans. Minimum and maximum loan amounts and APR may vary according to state law and lender or lending partner. We recommend you read the lender's and/or lending partner's personal terms and conditions in full before proceeding for a personal loan.