As we discussed in previous articles, there are some people who get really hung up on the idea that you have to buy a house in the summer or spring. While this is indeed the traditional time to look for a house, the time of year is not the most important factor. The most important factor when timing your new home purchase is your financial situation. If you aren’t ready from a financial standpoint, it doesn’t matter what the calendar might say.
So, let’s take a look at the five phases of this operation. It is better to break up such an important matter into multiple phases, as this will make it far easier to keep track of where you are and what you need to do.
Phase One: Clear Your Debts
This one should go without saying, but some people are not very conscientious of their debts. As long as all their payments are current, some people think nothing of taking on more debt. This is exactly the mentality that we want you to avoid.
Of course, clearing your debts is easier said than done. It’s not like you can just wave a magic wand and make them go away! You will need to figure out ways to save money and ways to make more money. By attacking the problem from both sides, you can accelerate the process.
First, we would recommend that you sit down and make a household budget. If you live alone, this will be much easier, but there’s no reason a large family can’t do the same thing. This is actually pretty easy. You just get a piece of paper (or maybe the “notes” app on your phone, if you prefer that) and write down all your household expenses for a single month. Talk to everyone in your household and make sure that they understand the importance of what you are doing. Make sure that every dollar is recorded.
Now that you have some numbers to work with, it’s time for the sit-down. Everyone will have to “take one for the team,” so to speak. In other words, they will have to give up non-essential luxuries to save money. Only by going without the things you want can you save enough money to clear your debts. As for making money, we would recommend that you look into various forms of online money-making, and make sure that everyone in your household has a job!
Phase Two: Build Up A Nest Egg
Now that you have established a more frugal and streamlined mode of living, you should be able to clear those pesky debts before long. But why stop there? You’ve done a good job of saving money up to this point, so don’t screw it up now! Keep living frugally for a little while longer so that you can save up a nice little nest egg.
How much should it be? Well, that all depends on how much house you want to buy. To determine how much you need, start looking at some home prices. Obviously, you aren’t going to seriously consider buying these, but you should be able to get a general impression of your preferred price range.
Phase Three: Make A Careful Budget
Now, you can take those budgeting skills that you have learned and apply them to the purchase of your home. The first thing you will need to do is talk to a representative from a company of custom home builders. You’ve already got a general idea of your price range, so lay that on the agent and let them do their thing.
When you have settled on a style and location that you like (and one that you can afford), it’s time to make a budget. Tell the agent that you need to know every single expense that will be involved in the purchase of this home. Make sure to ask multiple times to make sure that the agent doesn’t forget anything. Write it all down and start tallying the numbers to find your true cost.
Phase Four: Consider Your Options
Depending on the results of phase three, you may be able to consider some extra options for your home. This might include things like a swimming pool, a fountain in the front yard, any kind of home furnishings, a pool room, or any other “special-purpose” options that you might want. Any good group of luxury home builders will be able to offer you many interesting options at this point. Depending on your budget, you might need to be very careful not to overspend during this phase.
Phase Five: Close The Sale And Start Planning The Move
When the sale is completed (and trust us, it won’t be a quick process), you will need to deal with the final expense, and that is: Moving. In all this talk about buying the house, it is easy to forget about the fact that you still have to move. You will certainly need a moving truck, and you will likely have to hire some movers (although this might not be the case if you have some good friends).
Either way, this is the final phase, after which you can enjoy the fruits of your frugality at last. If you happen to really dislike your landlord, this is the part where you get to call him up and tell him what you think of him! Have fun, but be careful not to make any threats, as that can get you arrested.
While this process is an effective one, you may find that your situation requires some modifications. Don’t be afraid to modify this process if you see a good reason to do so, but we would advise you to do your homework and make sure that it’s a good idea. We have tried to give you a very “safe” plan…in other words, one that is less likely to fail. If you find this plan to be a good one, we hope that you will fill out the contact form below so that we can bring you more of our expert advice.