You’ve sat down with your family and collectively decided that this is the year you will buy a new home! Before you even think about searching for your dream home in the perfect community, there are many steps you will need to take. The most important step, and the most challenging for some homebuyers, is saving up your funds. Check out some tips below that will make life a bit easier when you are working towards saving for your very first Miller & Smith home!
Set a monthly budget
It may seem unnecessary now, but setting a budget will definitely help you stay on track. It you stick to it, it will force you to forego the little things, like buying that cup of coffee at Starbucks when you have coffee at home. There are many ways to stay on track with a budget, but one of our favorites is the free Mint app. This app lets you set a monthly budget for each category of your expenses and will periodically alert you if you’re getting dangerously close to reaching your limit!
Auto transfer into your savings
For a lot of people, the “don’t see it, don’t spend it” philosophy works great when trying to save money. Setting up an auto-transfer into your savings account monthly or bi-weekly is a good way to save for your new home without thinking too much about it. Similar to a retirement savings plan, it will add up more quickly than you think, and there are many different programs to help!
Set a goal
It’s a silly idea to begin saving for a home if you don’t have an end goal. According to Trulia, it is a safe bet to save at least 20% of a home’s purchase price, but aim to save more if you can! Even though you may not know exactly which home you would like to buy, browse locations and homes that may be within your price range and needs. This will give you a better idea of how much you should aim to save.
Make extra one-time payments
It happens to all of us: we receive a tax refund, holiday bonus, or birthday check, and it feels like they’re burning a hole in our pockets. These small chunks of cash may be rare, but it is very important to take advantage of the extra help! Instead of the “treat yourself” mentality, try your best to put any extra money towards saving for your new home.
Cut costs where you have the choice
Given the choice between plastic or solid gold, it is obvious which will cost more. With many choices you have to make, it is obvious which is the more economical route, and becoming aware of your options is necessary for saving. Pay attention to things like credit cards with annual fees vs. those without, and interest rates on things like student loans. Usually, there are a variety of options with different costs, but the benefits can be very comparable.
Whether you decide to save up for a spacious 3-level townhome at Brambleton, or a beautiful single-family home at Embrey Mill, Miller & Smith continually offers a variety of models that make the perfect starter home! Additionally, depending on which Miller & Smith community you decide on to purchase your first home, there are several preferred lenders that our sales team can recommend.
Explore our website to learn more about our new home communities in Virginia and Maryland!