
It’s no secret, buying a house is one of the most significant investments you'll ever make. And, while there are many factors to consider when preparing to purchase a home, one of the most critical is budgeting.
Budgeting will help you set a realistic savings goal for your down payment and closing costs. Even if you are using a down payment assistance program, you’ll still need some funds for earnest money, closing costs and reserves.
And, really understanding your spending habits and expenses will help you determine what monthly house payment you are comfortable with. You may be able to technically qualify for a mortgage of $3,000 per month, but does that payment fit with your lifestyle and feel achievable?
By tracking your spending and sticking to a budget, you’ll know exactly what size house payment you would like to target and that will really reduce your stress when it comes time to house shop.
Thankfully, there are many budgeting apps out there to help you stay on track and save for your dream home.
Here are some of the best budgeting apps to use when preparing to buy a house:
Mint: Mint is one of the most popular budgeting apps out there, and for good reason. It allows you to track your spending and income, set budgets, and even see your credit score all in one place. Plus, it's free to use! Check out Mint here.
YNAB (You Need A Budget): YNAB is another great budgeting app that helps you track your spending and set goals. The app also offers educational resources to help you learn about budgeting and personal finance. Check out YNAB here.
PocketGuard: PocketGuard is a free app that helps you stay on top of your spending and save money. It categorizes your expenses and tracks your bills, so you can see where your money is going and where you can cut back. Check out PocketGuard here.
Acorns: Acorns is a unique app that rounds up your purchases and invests the difference. While it's not necessarily a budgeting app, it can help you save money over time and potentially earn a return on your investment. Check out Acorns here.
Personal Capital: Personal Capital is a comprehensive app that allows you to manage your finances, track your investments, and plan for retirement. While it's more geared towards investors, it can still be a helpful tool when saving for a house. Check out Personal Capital here.
We also recommend keeping those savings in a high-yield savings account like Marcus. The benefit is twofold. One, you’ll earn more money from compound interest while you are working towards your savings goal. Two, the money is slightly less accessible so impulse purchases will not be an option.
Wondering how much you need to save and what you can afford? Reach out today and we will put together a customized roadmap to help you achieve your real estate goal. Because anything is possible with the right team and a plan! #buildwealth
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