There are no two ways to slice it – rent is expensive. For most of us, it takes a huge chunk of our monthly income. And as rent, especially in the Seattle area, continues to rise, this dilemma does nothing but increase.
While buying may very well be more affordable than renting, how is one to afford it with all that money going into our landlord’s pockets? Maybe buying isn’t an option?
Buying is most definitely an option. But, it’s going to take some work. Saving up for a down payment and closing costs is no easy feat. In most cases, this means you’ll need a minimum of $20,000.
It goes without saying, if you aren’t saving, start saving now. Taking no action will undoubtedly lengthen your home buying trajectory.
Additionally, look for new ways to cut your expenses. Freeing up a chunk of your finances will allow you to increase your savings rate and become a homeowner more quickly. These are some areas in which you might be able to save:
Get a Roommate
Love having your two-bedroom apartment all to yourself? Consider taking a break from lounging around in your birthday suit. A roommate will not only help you reduce your monthly rent payment, they’ll help you cover other monthly expenses like water and electricity.
Cut an Expense
Sounds obvious, right? Unfortunately, sometimes it’s not. Many of us have daily habits that are seemingly innocuous but can end up costing us big time. For example, if your daily Starbucks break costs you $5, you’ll have dropped an average of $107.5 a month on simply stepping away from your desk. Do you have a gym membership you rarely (or never) use?
Perhaps you have a knack for buying Groupons you don’t really need. Or maybe you have a propensity for eating out. Take a close look at your extraneous expenses and identify those you are willing to forego. It could mean a big boost in your monthly savings.
Consider Moving Home
Remember the good old days when mom did your laundry and dad paid for the Cable bill? While this doesn’t count as paying rent, if you’re up for sharing a roof with your parents once again, you could significantly accelerate your savings. By eliminating your monthly rent payment, you can apply all those additional funds towards your down payment.
As you start planning, it’s a good idea to know where you stand. Our loan officers can help you evaluate your credit score and estimate how much money you need to save.