Saving For A House While Renting
If you’re a renter who dreams of homeownership, you’re probably aware of all the twists and turns on the road to buying your first home, especially in recent years. COVID-19 and inflation are just a few factors contributing to the increasingly expensive and competitive housing market in the United States.
While finding and buying a home requires dedication and a positive attitude, it’s not an impossible task. Learn how to save for a home while renting with helpful tips from Landmark National Bank!
Use Your Mortgage Options to Create a SMART Goal
Every journey needs a destination, and homeownership is no different. You can certainly think of owning a home as your destination, but between working, paying bills, having hobbies, and spending time with loved ones, it’s easy to lose sight of a general goal like homeownership.
We recommend using the “SMART goal” technique to stay on top of your goal of owning a home. A SMART goal exhibits the following traits:
- Specific—What are you trying to accomplish?
- Measurable—Quantify your goal so that you can track your progress.
- Achievable—Give yourself a reality check and confirm you can achieve your goal.
- Relevant—Identify the “Why” behind your goal.
- Time-bound—Create a time frame to help yourself focus on your goal.
A SMART goal about homeownership looks something like this: “I will save the amount of money I need for a down payment by setting aside $500 each month for 12 months.”
The community you’re looking at, the type of house you want, and your credit score will affect the time frame and dollar amount you use for your homeownership SMART goal. Landmark National Bank has a valuable you can use to create your SMART goal: our Quick Rate Calculator. Not sure if you should rent or buy a house? Dive into our Home Rent vs. Buy Calculator.
These financial calculators provide a quick and easy way to gauge your options for a mortgage. For more accurate insight, you can also find a Landmark National Bank mortgage lender near you to discuss the home loan process.
How much down payment do I need in Kansas?
Your down payment amount depends on several factors. The home loan process for a three-bedroom home in Topeka, for example, may look quite different from the process for a starter home in Overland Park. Find your nearest mortgage lender to discuss the best course of action for homeownership in your community.
How to Save for a House While Renting: 7 Tips
Until you have the chance to talk to a Landmark National Bank mortgage lender, you can still work towards your goal of homeownership! We’ve gathered our best ways to save for a house while you rent.
1. Open a Savings Account for Your Home Fund
The first step is having a place to put your hard-earned money for that future home! Open a savings account at Landmark National Bank; our personal savings accounts are designed to help you reach your goals. If you’re not sure which account type is best for your situation, reach out to our helpful team.
2. Create a Budget
We can never say enough good things about a well-planned budget! Budgeting is important for many reasons. In addition to helping you plan for big purchases, such as a home, it can aid you in avoiding debt and overspending. Learn how to make a budget plan from scratch and determine how much you should spend on housing with the help of Landmark National Bank.
3. Calculate Your Debt Management
Student loan payments and credit card debt can slow down your journey toward homeownership. If you have the means and commitment to eliminate your debt sooner, use our Snowball Debt Elimination Calculator. We’ll help you learn to properly manage or accelerate your debt payments.
4. Develop a Side Gig
If you have a knack for knitting, painting, or other crafts, consider turning your hobby into a side business. You can even use playing video games to earn money through live streaming on platforms like Twitch.
5. Save Your Tax Refund
You may be tempted to splurge your tax refund, but consider putting it into your down payment fund. Even if it isn’t a large amount, it can still help push you a little closer to your goal.
6. Adjust Your Current Living Situation
It may require more commitment than our other tips for saving for a house, but renting an apartment or house with roommates is an effective way to save money. Whether it’s with friends, family, or your significant other, sharing the cost of rent gives you the option to set aside more money for a home in the future.
7. Apply for an Assistance Program
As we mentioned earlier, the road to becoming a homeowner has gained a few hurdles in recent years. At Landmark National Bank, we’re happy to help you work toward owning a home through our home loan options. Ask your local mortgage lender about first-time home buyers programs, USDA loans, and more.
Explore Your Mortgage Options with Landmark
At Landmark National Bank, we’re dedicated to helping our friends and neighbors throughout Kansas work toward homeownership and other financial goals with our financial products and services. Explore our financial calculators or contact a Landmark National Bank mortgage lender near you to learn about becoming a homeowner today!