Budgeting for a Home

Resources

Saving for a Home  |  Budget Plans

• Get pre–qualified
  
  Getting pre-qualified gives you a snapshot of what you can afford right now so you can start preparing for homeownership.  Once you have a realistic idea of what your monthly payment could be or how much you need to save, it’s much easier to set and stick to a budget.
  
  Learn more about pre-qualifications vs. pre-approvals
  
  
• Paying off debt while saving for a down payment
  
  Your Affinity Loan Officer can give you advice about saving for a down payment
  
  If you have a high amount of debt, start with the highest credit card debt or interest rate first. Pay as much as you can on it and make the minimum payments on any other cards. Do the same for each card until you feel more financially comfortable.
  
  Don’t close out your accounts once you have paid them off.  It is important to have a good credit history-showing you can make payments on time-over time, as well as manage debt responsibly by having a few lines of credit open with low balances.
  
  If you have low–moderate debt, put aside more money for your down payment.
  
  Learn more about credit
  
  
• Set a Savings Goal
  
  Define your savings goal
  Give yourself some time to save the money
  Work out how much money you want to set aside each month*
  
  *If your new mortgage payment is going to be larger than your existing housing expenses, it’s a good idea to put the amount of the increase into a savings account so you can get used to making the larger payment.
  
  
• Create a budget
  
  Get organized
  Understand your "necessities"
  Think before spending
  Design a spending plan and try to eliminate unnecessary spending
  Revise your budget as your needs change
  Keep your eye on the big picture!
  
  Remind yourself–often–why you're saving
  Get your whole family involved
  Stick to your budget as much as possible
  It's OK to splurge a little now and then
  
  
• Helpful Resources
  
  Online banking and bill payers
  
  Affinity customers get free checking and online banking plus three months of bill payer for free when they open a checking account
  
  Online calculators
  Personal financial software or online financial planners
  Register for a Money Management Class