3 Things Every Renter Should Do
You ended the year with holiday parties and a New Year’s Eve countdown, and along with the New Year came goal setting, right? It’s time to visualize where you see yourself the same time next year. Is owning a home on your list of goals?
Here are three simple beginning-of-the-year steps that will jump-start your journey to home ownership. You’ll be on your way to a new home before the next countdown begins.
3. Review your budget and credit score
Every renter should be a budget expert and super saver. How much are you currently spending on rent, utilities, food, etc.? What is that amount monthly and annually? Take a look at all of your expenses and determine where you can cut back to begin saving. A financial management app such as You Need a Budget, Mint, Albert, or Prism Money might be helpful.
2. Take a Home Buying Course
Every renter should know that home ownership is doable. Landlord Breakup, the home buying course and home ownership plan for renters, helps renters stop living year-to-year, get out of the rent race, and become homeowners. In the course, you'll review your credit and finances so that you know where you are and where you need to be, including recommendations on improving or building your credit. Renters create a home ownership plan to prepare for home ownership. They go at their own pace, but can be ready in as little as 3 to 18 months.
1. Become knowledgeable about DPA
Every renter should understand the resources available that make home ownership possible. A renter’s biggest obstacle to home ownership is saving for a down payment and closing costs. Down payment assistance (DPA) programs can give you a major home ownership boost. Down payment assistance includes grants that do not have to be repaid and buyers can receive up to $10,000.
3% down loan programs are available and ideal for first-time home buyers who can’t afford to make a large down payment (typically 5% to 20%) but would otherwise qualify for a mortgage. The 3% down payment and closing costs can be funded with certain gifts; or with grants or loans from a nonprofit or government agency.
Greatest success and Happy New Year!
This has been a quick tip by LandlordBreakup.com, the website for smart renters. If you're a renter who is curious about how you can turn your rent payment into a mortgage payment, check out our home buying course and home ownership plan for renters. Check out the course.