My House Buying Story – How to Save Money for Buying A House

This is My House Buying Story. How to save money for buying a house | What to Look For When Buying A House

Buying A House

It’s kind of exciting how I am sitting here to narrate my house buying theory. It feels like a dream than reality. I am happy and happy for my friends who are on the house purchasing journey. I promise it’s rough and bumpy but fulfilling once you close down the deal. However, purchasing a home comes with money matters. The most significant factor and guarantee for owning a home is having money. I know you must be thinking I had millions of dollars and had a big paycheque. It’s quite the opposite I had an average paycheck and was self-employed. So I was paying myself and solving other expenses.

My House Buying Story

My House Buying Story

Let’s start after my college. I moved to a new town. I was young, probably 23-24 years and not willing to get employed. I know, right? I was doing blog writing which offered a good salary for a young person. I could manage to pay rent, food, fun and clothing money. However, life was the same waking up writing, shopping, sleeping and paying bills. So after one year, I remember I got to 24 years then. I felt I should have my home when no rent or other expenses are required.

My heart and mind were for the idea, but my bank account was reluctant. Actually, no buying move can take place when your bank account is not agreeing to the facts. I felt the urge to change my life since I was young and still single. Oh! That was another fact my mind couldn’t comprehend how I wanted a house without a spouse to help. I had weird thinking that the bank won’t go for a single girl buying a home on a mortgage. Somehow I felt my loan request would bounce due to the marital status. It was foolish single people purchase property, so don’t tune your mind as I did.

Steps to Buying A House

Preparing for the purchasing process

The majority of home buyers (serious ones) involve home and financial experts in the process. However, I was sure I needed a home (yes, at my age) but wasn’t sure that I could start the process. So I called myself, my mind and my bank account to a board meeting. Which probably took an hour or so. My bank account presented the case that I don’t have enough savings for the first deposit. I was ready to start anytime and sacrifice for the big mission.

I also had to consult my credit card history and see whether it needs some building up. I am not a credit card person. However, I pay my credit card bills on time, I don’t go beyond my credit limit, and I have only the credit cards I need. I think the healthy part of using credit cards is to avoid bad credit card reports. Once settle about a credit card, I knew it’s about saving for my dream house.

How to Save Money for Buying A House

Actions to Save Money

From my average income, I planned on the much I could save. There are different plans, such as the 50, 30 and 20 methods. Which people use the 50 for their expenses and bills? The 30 per cent for personal expenses such as clothing out and save the remaining 20 per cent. In my case, I saved 50 per cent and used the other 50 for necessary expenses. I am not a spender, so cutting some priorities wasn’t tricky.

I also requested my parents to host me for one year. Thanks to them, I cut down the rent expense for a whole year and save the rent portion. For the entire year, I didn’t spend on travelling or shopping. Suppose I needed to treat myself out. I used credit card points which I redeemed for several expenses. My parents were supportive and ensured most of my needs, especially food and clothes, were met.

I save 35% of the required down payment, and I approach the bank for the rest of the payment. First, I had to get a good location and the type of house I loved. It didn’t come through fast as I wanted, especially in the year I wanted. But eventually, I found my three-bedroom home, which has a balcony and back yard as I wished. I made my payment and left with the bank to pay the mortgage loan. To avoid sinking into other debts. My parent’s advised me on opening a savings account, now different from the one I previously had. The money was termed as emergency funds; I saved 20% of my income every month. The other 80% most went to paying my mortgage, which I wanted to pay within two years. Again I sacrificed my spending and directed most of my funds to the house loan.

It was a happy feeling though I watched my friends go out and live expensively. My parents were kind to invite me for dinner constantly. So it felt I was eating out, and I enjoyed spending time with them. Last month I paid my last instalment. It’s a great relief to have the house in my name finally. I am happy with my choice. I can now draw my efforts to another project, maybe a new car or business. However, it’s nice to be a homeowner. Now am focusing on decorating and making it cosy.

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