After 10 years of marriage, I’m still enjoying living in the first home I moved into with my husband. Buying a first home can be one of the most exciting events in a person’s life. Before making this important expenditure, people need to first sit down and determine how they will successfully finance it. After all, a home will likely be the most expensive purchase you make in your life. Talk to a loan officer and determine how much money you can reasonably borrow. Then, decide how much money you want to use as a down payment. You also must decide how many years you will finance your home for. On this blog, you will learn about the process of buying a first home with a loan.
If your wish is to make your bills lower and save more money, this means that you need to decrease the amount of money that you spend on fixed bills. Decreasing fixed bill amounts will make sure that you keep more of your salary, even if you have to spend a little more on food, gas, or other extras some months. One of the largest payments that most people deal with on a monthly basis is the amount of money that they pay for a mortgage. If you want to decrease your mortgage, here are some steps to take before you apply for a home loan that can get you a monthly mortgage for the cost of utilities.
Save at least half
Though traditional mortgages will allow you to put down around 20% of the total purchase amount, putting down half on a home loan is a good idea. See a mortgage broker to determine the amount that you would be approved for based on your income, expenses, and credit. Take this amount and divide it in half. Save at least half, to have a home loan that is twice as low as what you an afford. This may net you a home loan that is around the cost of your past utility bills, but you will be paying for a house.
Set up a rental property on your property
Find a home with a carriage house or a basement that can be set up to hold a renter on their own. If necessary, look at taking out home equity loans in order to fix up the property. With a small home equity loan and a low mortgage, you may be able to afford to charge lower than market rent in your area and still have the rent cover a large portion of your property. Be sure to offer options that will attract long term renters such as a dedicated parking space, sound proofing between the two homes, and a washer and dryer with updated rooms.
Invest in options that pay monthly
With the money that you are saving from having a low cost home loan, you can invest the extra money into investment options that will give you an extra income each month. There are mutual funds that pay out monthly as well as stock options that pay out up to 12 times each year. Creating an investment portfolio filled with these options will little by little give you the money that you need to cover your small mortgage. Soon, you may be able to invest enough to pay your mortgage from your investments, rather than having to pay for your mortgage out of your income any longer.