With the new year just around the corner, about half the population is thinking about the resolutions they’ll make for 2015. A solid 45 percent of people set goals for the upcoming year, with the most popular of these being to lose weight, get organized, stay fit and healthy, and enjoy life to the fullest. While none of the ten most common goals mention saving for a down payment on a house, it can be inherent to number three of the top ten New Year’s resolutions, to spend less and/or save more money.
We’ve discussed down payment options in detail many times before. Whether it comes in the form of a gift, or through a municipal down-payment resource program, there are options to get new homebuyers into a home of their own. In addition, federal loan providers Fannie Mae and Freddy Mac have recently announced clarification of lending guidelines, as well as lowering the percentage down required, returning to the 3 percent of yore.
Image courtesy of Mr. Money Mustache.
Still, to buy a home, a down payment is necessary, and so we return to Resolution #3: save more money. If this has proven to be a challenge in the past, educational programs abound to help you understand the how and why of saving money. Here are a few resources to investigateStill, to buy a home, a down payment is necessary, and so we return to Resolution #3: save more money. If this has proven to be a challenge in the past, educational programs abound to help you understand the how and why of saving money. Here are a few resources to investigate:
Dave Ramsey (DaveRamsey.com)
Dave Ramsey, in all things, is far more conservative than I will ever be in this lifetime. But after completing his Financial Peace University earlier this year, I can say that his program makes a lot of sense: pay down your debt, insure yourself and your belongings appropriately, and save, save, save! Ramsey’s philosophy is based on his Baby Steps, which are simple and straightforward—but that’s not to say they’re easy! Ramsey’s program is well explained and logical. Whether or not you follow his system to a T, there’s something to be learned from this guy.
Suze Orman (SuzeOrman.com)
You may have seen her showcased during a recent PBS pledge drive, or on any number of other television or radio appearances in recent years—including her own programs on OWN TV and CNBC. Suze Orman, is considered America’s most recognized expert on personal finance. Her philosophy is encapsulated in this saying: People first. Then money. Then things. Her many books outline everything from spending and saving, buying real estate, and funding retirement. Though she doesn’t have a comprehensive system like Ramsey, reading her books, watching her show or specials on DVD will jump start your enthusiasm and motivation to get knowledgeable about your finances.
Mr. Money Mustache (MrMoneyMustache.com)
Veering way, way off the beaten path, we arrive at the doorstep of 30-something retiree and frugality expert extraordinaire, Mr. Money Mustache. With blog posts with headings like ‘Credit Card Churning: for Mustachians or Sucka Consumers?’, and ‘Case Study: Average Everyday Complainypants Seeks Redemption,’ this guy makes saving financial education interesting, challenging, fun. A far more aggressive plan than either Ramsey or Orman, MMM, as he refers to himself, still emphasizes the importance of saving money (recommending stashing away 50 percent of your income) and advocates investing in real estate. While he doesn’t have any books in print, the MMM website offers a suggested reading list to newcomers, and an e-newsletter.
If your resolutions include saving money for a down payment, it’s also helpful to check in with a lender. Contact us today to get started on your homebuying journey!
Angela Anderson, Realtor, Results Support Services: EMAIL — BIO
Licensed Associate Working with Sharlene Hensrud of RE/MAX Results, and HomesMSP — Sharlene, John, Angela