*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
When it comes to purchasing a house, it's important that your finances are in a comfortable place. You'll be asked for your assets, liabilities, bank statements, and tax returns. There may also be additional documentation needed if the underwriter or lender deems it necessary in order to complete the process of a borrower's loan.
Here are a few tips to help you save money in order to find yourself in the best financial position to purchase a new house.
1. Emergency Funds
Emergency funds are one of the best financial decisions a person can make. It's important to add to the emergency fund with every paycheck and use it only in emergency situations. Emergencies, whether medical, financial, legal, or otherwise will happen to each of us in one way or another. It's best to have funds on hand that can cover those things when they arise, so that you don't have to dip into funds not meant for emergencies. This money might not be used in the purchase of a home, but it might come in handy for housing situations if you're ever laid off from a job, or have to take an unexpected deduction in pay.
2. Pay off your debts
Debt is bondage. When a person takes on debt, they are bound by the rules that come along with that debt. Taking on debt isn't necessarily a bad thing, as long as you are responsible when it comes to repaying the debt. Being responsible with debt can help banks recognize you as a reliable borrower, which allows for more opportunities to purchase homes and other items that make life easier. Set goals to pay off your debt as quickly as possible and as you become free from your debts, more opportunities will open up to you.
3. Invest
Investing is a great way to save money. In most instances, you'll gain higher returns off of your money with investments versus stashing your cash in a bank account. Be smart with investing. Look into the history of different companies and the recent trends that have been occurring. Buy low and sell high! That's the name of the game. Investing can help build funds for long term financial success. Investment funds can also be used in the purchase of a new home.
Let me know if you have any other questions when it comes to ideas for saving money. I'd love to help you prepare to purchase new homes!
*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
Brayden Ramsay NMLS #1997195
Momentum Loans NMLS #1606597
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