A Multi-Family Home

Steps That Can Help You Move From Renting To Owning A Home

by Arnold Gomez

When you rent an apartment or home but dream of one day owning your own residence, the path to ownership may occasionally seem challenging. While it's true that you may not be able to buy your first home next month or even next year, working hard for this goal can help you make it a reality. Changes such as getting a better job that pays more money can always speed up your ability to buy your first home, but a career change isn't always necessary. Here are some other steps that you can take that will contribute to your ability to be a homeowner.

Set Aside Money Each Month

One of the challenges of buying your first home can be to save enough for a down payment. The average person needs to work hard to save this money, and there's no better time to start than now. Make a plan to set aside a specific amount of money each month, and then break this goal down further to save a specific amount each week. Transfer this money to a separate bank account and don't touch the balance unless doing so is absolutely necessary. For example, if you have a goal to save $500 per month, transfer $125 to the savings account every Friday.

Cut Down On Your Cost Of Living

One of the best ways to be able to save for a down payment is to reduce the amount that it costs you to live. There are a variety of ways to accomplish this goal, depending on the state of your finances. Things such as taking public transportation instead of driving and making coffee at home instead of buying it are small changes that can add up each month. You can also evaluate your monthly bills. For example, reducing the number of TV channels you have in your programming package can save money, while using less data on your smartphone can also be beneficial.

Settle Up Any Debts

When you owe money, it can be challenging to save up enough to buy your first house. Consider what debts you may have and evaluate how quickly you can pay them off. For example, if you're nearly done paying a student loan, put all your available income into these payments so that you can pay the amount off and stop making interest payments. Likewise, paying down a line or credit or a loan from a family member can also help you take a step closer to affording to buy your first home.

Call a real estate agent for more help.