Managing your money well is essential to successful homeownership. Not only will you have to have some money saved to purchase your home, successful homeownership requires strong saving habits.
Examining your spending habits helps you know if you are spending money in ways that will help you reach your dreams or are pushing your dreams further away.
Savings: Do you have any savings now? Can you make, and stick to, a plan for getting at least $3000 in savings needed to pay for expenses related to purchasing your home?
A successful homeowner also needs to save for unexpected expenses, maintenance and repairs. Having a savings plan is essential.
Spending: Do you know where your money is going? If not, keep track for one to two months – or go back to your bank/credit card statements over the past two months – to see where you’re spending. Is your spending in line with your goals? If not, start looking for places where you can lower spending and put that money into savings.
Bills: Are you having trouble keeping bills paid on time? Unpaid bills that go to collection have a big impact on your credit and make a lender unable to lend you money for a home.
Are you having trouble paying bills because of low or inconsistent income? Is spending a problem? Identifying the source of the problem is the first step to fixing it.
Debt: How much debt do you have? Are you making regular payments or falling behind? Is your debt going up or down? Not only does the amount of debt, minimum payment amount and payment history impact your credit, they impact how much you’ll be able to borrow for your home.
Need help? Learning to handle money in a new way can be challenging. To get help, contact:
- GreenPath Financial Wellness (800)550-1961.
- Dane County UW Extension Financial Education Center (608)261-5077
- HBRT lender members
Learning and following new money management habits can be challenging. We’re here to help you.