Annette – I was thinking about selling my home and buying a larger one in the next year. Is there anything I can do now to help me financially so my payment stays around the same amount of monthly? I only owe $75,000 on my home.
Dave, Farmington Hills, MI
Thank you Dave for asking this great question, and I am sure others are wondering about this as well.
How do you truly make a plan for your family’s housing future?
If you are sitting there wondering whether you will ever be able to move or ever be able to save enough money to buy a home, you must first sit down and create a plan of action. After you know where you want to live, then begin writing down your goals.
From the onset, you need to write out where you would like to see yourself. Now, ask yourself these questions:
How much do I want to pay down on my new mortgage?
When do I see myself buying a new home?
What is the value of my current home?
How much would I net if I sold my home after paying of the mortgage?
Is there some debt that I should pay off to effect my debt to income ratio?
The next step is to come up with some realistic actions that are measurable.
- Writing down what you spend each month.
- Working out a budget and sticking to it.
- Set an amount to save for retirement and housing each week.
- Finding ways to save money on what you are spending.
How are your spending habits? Can you save money monthly to help? Here are a few ideas:
Insurance: You can save several hundred dollars per year by purchasing auto insurance from a licensed, low-price insurer. Call licensed insurers to learn what they would charge you for the same coverage. You can do the same for homeowners and renters insurance.
Food bills: You can save hundreds of dollars a year by shopping at lower-priced food stores. Convenience stores often charge the highest prices. Convenience can cost more!
Eating Out in Restaurants: Set a budget and make going out a treat. Also curb the coffee and drink spending during the day, make a goal to only go out one day a week.
Either way, the first step is to pick up the phone and call me, and I can sit down with you as your Real Estate Coach and answer these questions and create a plan of activities that will put you in the right financial spot to take the next step and move into a higher valued home without as much additional expense.
Always here to help, I care about your real estate decisions.