Saving for new homes in OKC can be daunting, especially if you don’t have a plan. Follow these proven tips to pile up the funds you need to get your family into a brand new home.
Decide how much to save
Start by using an online mortgage calculator to find out how much house you can afford. Then determine your goal down payment amount. That could be as low as 3% for some conventional mortgages. VA and USDA loans can be obtained without a down payment if you qualify. Putting down 20% or more will allow you to you avoid paying PMI (Private Mortgage Insurance). The more you put down, the lower your mortgage and monthly payment can be.
Save for closing costs and moving
Factor in closing costs when determining how much money you need. Plan to save 2-6% of the mortgage amount for these costs and related fees. Make sure you also have money for moving expenses and any new furniture, repairs or updates at your new home. Beyond that, it’s wise to have an emergency fund of several months’ income before you purchase a home.
Set up an interest-bearing savings account
Keep your savings in a safe place until you need it. Don’t risk it in the stock market. You can still earn interest on your cash by putting it in a high-yield savings or money-market account.
Keep your house savings separate from other accounts
Don’t mix your home-buying money with your emergency fund, and don’t pull from your retirement to buy a house. Retirement withdrawals come with penalties and taxes unless you’re over 59 ½, and even then you’ll lose the value of compounding interest.
Check your expenses to find money
Keep track of your expenses and make a budget. Are there areas you can cut back on to help you save faster for a new home? Can you pack a lunch for work, limit restaurant meals to once a week, skip vacation or find cheaper insurance? Cancel unneeded subscriptions and look for a cheaper phone plan.
Make extra money
Don’t change jobs when you’re getting ready to buy a house. Do look for other ways to increase your income, like asking for a raise, taking on a side hustle or part-time job, or selling things you no longer use. Try consulting, tutoring or freelance gigs.
Stash away unexpected money and cash gifts
Did you get a bonus at work or receive a tax refund or generous gift check? Put it toward your house savings. If you receive a monetary gift toward your down payment, you may have to prove that it’s a gift and not a loan. Ask your lender for details.
Look into special programs and incentives
Finally, ask your lender and home builder about opportunities for help with your home purchase. First-time buyer programs exist to help get people into their own homes. Many home builders also offer incentives such as special interest rates or free upgrade packages that can help you afford a new home.
TimberCraft Homes has affordable move-in ready homes available now in OKC at Anthem, Echo Park and Highland Pointe. Enjoy modern living in planned communities with amenities! Call TimberCraft Homes today at 405-784-7245 to tour these popular communities and see our available new homes in OKC.
