BEING A GREAT RENTER
If you've begun to realize that paying rent is a bit of a drag, this post is for you!
Purchasing a home is one of the biggest financial decisions most people make, and there is a lot to learn and consider. Because purchasing a home is a process, I am going to break it down into several posts over the coming weeks.
Typically, it's best to start from the beginning, so let's start with renting. The first step in purchasing a home is being a good renter! Here are some tips to move you toward home ownership more quickly:
1. Choose a rental that is affordable for you. Let's be honest, we all want to live in an amazing home. Nonetheless, while you're renting, consider a place that allows you to put a set amount of your income into savings each month. Over time, this savings will allow you to put a down payment on a home of your own!
2. Make sure your insurance is current and appropriate. Car Insurance: We are required by law to carry car insurance. Make sure you keep this insurance up to date. If you get a ticket or get in a fender bender without insurance, you will deplete the money you are saving to purchase a home.
Medical Insurance: While medical insurance is not required by law, in the event of an unexpected illness or accident, medical insurance can help to protect your savings.
Life Insurance: If you’re working together with your family to save money to buy a home, isn’t it a good idea to protect that dream for your family? A life insurance policy will pay a benefit to the beneficiaries listed in the policy in the event of an untimely passing.
Home Owners Insurance: Most people use a loan to purchase their home and are required by their lender to purchase home owners insurance. While you are renting, you will want to protect your belongings with sufficient insurance in case of fire or theft.
3. Know your numbers. As you think about buying a home, it’s important to know and understand your current finances. What is your credit score? You can get a free credit report once each year. If you find that there are issues on your credit report, please give me a call! I can put you in touch with a mortgage professional who will be able to help you to determine the best steps to take to improve your credit as quickly and easily as possible. Please ask a professional, as sometimes people do things to try to improve their credit that are not the most effective steps! After you know your credit score, spend some time creating a budget, and stick to it! There are some amazing free apps out there that will allow you to track your spending. If your bank doesn't offer one, here is an article that recommends several to choose from.
