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How to Save for a House and Tackle Debt

Tips to help you tackle debt and save for a home of your own.

So, you want to buy a piece of the American dream: a house of your own? Like most of us, you don’t have the cash to buy it outright and still a hefty amount of debt to pay off until you’re out of the woods. If you do have debt, you’ll want to pay off as much as possible before applying for a mortgage – while also saving for a down payment. Although this concept can seem daunting, it can be done. Here’s how.

Set a savings goal

You’ll need to save up for a down payment if you’re serious about buying a house. Commit to a specific price range for your future house and set a savings goal for your down payment. Talk with your lender to figure out how much you’ll need to save. Motivate yourself to save money every month by focusing on your timeline and your dream home!

Open a separate savings account

It’s no good having your down payment, emergency funds, and rainy-day activity cash bundled in one account. These amounts will ultimately be hard to separate, if at all. It’s best to keep your down payment savings separate from other savings, maybe even at a different financial institution, so you won’t end up spending the money on something else.

Understand your responsibility

Make a list of all of your debts and interest rates for each. Consider paying off your smallest balance first while keeping up the minimum payments on your other debts. Once that first debt is eliminated, direct that money to the next highest balance, and so on.

The real estate industry can be a minefield, so it pays to have someone trustworthy by your side. Serving all of California and Texas, contact Andraya Coulter to get access to the top home loans. I can help you secure the loan that will land you the house of your dreams!

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