How to Pay Off Debt When Saving for a House
Most of us mere mortals have a bit of debt to our name. That baggage is loaded with interest rates, loans, and payback deadlines. Fortunately, just because we owe a bit of money doesn’t mean that our vision of buying a dream house dissipates. It can take some time, but luckily you can save for a house and tackle your debt!
Intrigued yet? Read on!
Set Savings Goals
All future homeowners realize that a home includes saving for a hefty down payment. Commit to a specific price range for your future house and set a savings goal!
Set Up a Separate Savings Account
If you don’t already have a savings account for your down payment, set one up! Keeping your savings separate means that you won’t dip into it for car repairs or a shopping splurge.
Strategize Your Debts
Make a list of all of your debts and interest rates for each. The debt snowball method may help you: pay off your smallest balance first while keeping up with the minimum payments on your other debts. Once that first one is eliminated, direct that money to the next highest balance, and so on! Don’t forget to budget your down payment savings into this plan.
Stick to It!
Paying off debts and saving for a house are both long-term goals. Be consistent and you’ll see movement!
Contact Dean Rathbun when you’re looking to secure the right mortgage for your needs. We work with your credit score and financial picture to ensure that you lock in the right home loan to land that house of your dreams. Give us a call to get started.