You don’t have to make six figures to buy a house, but you do need a strategic plan and a discipline mindset. Check out these steps if you are in the beginning stages of your home owner journey.
Vision Board
Waking up and seeing a beautifully decorated board with your house dreams will help keep you motivated and excited about the process. If you’ve never done one, then DreamItAlive can give you great ideas to get started.
Meet with An Expert
Another step you can take is to look on Hud.govto find a local non-profit that will help you for free. They can help with general budgeting, a debt management plan, and housing counseling. You can also download NerdWalletto help you create a budget and access their housing down payment calculator.
Check Your Credit
Download Credit Karmato check your score because it won’t leave a negative mark every time you check it. If there are errors on your report, you can write a credit dispute letter asking for those items to be removed. Make sure you mail a copy to each credit bureau and to the company asking for the debt. Also, The Fair Credit Reporting Act states that most negative items must be removed after seven years of delinquency.
Live on a Budget
Put off extra things like vacations, weekend getaways, trips to the spa, and anything else that is not free or the bare necessity. Most cities offer free events and workshops, so you can still find things to do with a little effort. Eventbriteis a great site that allows you to search for free events in your area.
Help from Family & Friends
You will need anywhere from $15,000 to $50,000 and up in cash for a down payment, closing costs, and moving costs. Instead of gifts for your birthday and the holidays, suggest cash gifts and make sure you tell people the reason why. You can also set up a private Facebook page just for friends and family and use the page to talk about your homeowning goals, why it is important to you, and how your loved ones can help.