2018 is the year you could easily own a new home in Charleston, SC. Whether you are a local who simply wants to buy real estate property or you’re possibly relocating to South Carolina for a new job opportunity, there has never been a greater time to move to a city as lovely as Charleston. It also does not matter whether you are buying a retirement home, or possibly just another house. This is because Congress has been discussing a tax plan that could make it much easier for you to buy a home.
In addition to that, there are various deductions that are set for elimination in the coming year. Therefore, what you need to know is how to organize your finances. Here is what you should do and must know.
- Come up with a clear goal
You absolutely can not create any type of action plan if you have yet to decide where you need to go. To start with, determine the amount of money that will be needed to buy a new home. You then should proceed to inquire about the percentage that you have to pay as a down payment so that you can save for it. Most of the time, you will be asked to pay at least 20% of the asking price, and you have to start saving for it right away. Finding this information will help you to understand how to look for the best mortgages, as well as understanding where you first need to start.
- Get a separate savings account
If you want to buy a house as early as you can in 2018, don’t mix your savings with other finances. It is important to designate a different account for this purpose. This way, you will monitor your savings, and evaluate the progress that you have made. At any time, you always will be aware of how much you have saved, and how much more is needed.
Now, where a lot of people can make mistakes while trying to save the money for a big goal like saving up for a down payment, is that you might not see that savings fund grow as fast as you would like. It can be disheartening to possibly not see it at the numbers you want, and decide to start pulling that money out of it for other needs. Absolutely do not do this, and know ahead of time that you very well may be tempted to do so. Errors like this can eradicate any financial momentum you had quickly. Know this ahead of time and be sure to stay focused (and smart) with this goal.
- Choose an automatic savings plan
After finding out how much money is needed for the new house, and knowing where to save it, the next step should be to determine how it will get there. Everyone knows that there are many things that require your money (fortunately and unfortunately). If it is going to go through your hands before it gets to the savings accounts, you may be tempted to use it for other urgent needs (again, further stressing the importance of awareness and thinking ahead). This happens all the time. To avoid this, ask your bank to create a standing order so that money is deducted from the main account, and deposited to the savings account automatically. There are other ways to follow through on this digitally as well, depending on your bank and any possibly financial platforms or software that you use.
- Revisit your budget
Be sure to go back to your budget and create room for these new developments. You definitely have been spending your earnings on various things without considering the need to buy a house. Now that this has become a major priority, it’s a good idea to figure out how it will fit in there accordingly. Take a look at some of the things that have been taking up the bulk of your earnings, and come up with a way to slash them or be more resourceful with your finances.
- Avoid massive transfers for the time being
When you apply for a mortgage (getting pre-approved is vital), lenders will scrutinize your bank accounts to see your recent spending history. This is absolutely not the time to make huge transfers because they will be seeking to know where these funds came from. To be sure of getting the right lender, maintain consistency with your savings pattern, and ensure that there is no suspicious activity in any of your bank accounts.
There is no doubt that preparing your finances is a major step when it comes to owning a home in Charleston. You also should know how to choose the right bank to save with, and where to find the best mortgages. Thinking ahead and awareness are so vital in accomplishing any goal you set out on.