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Budgeting for a New Home in the New Year

A new year is when new resolutions are made thanks to the sense of starting with a fresh, clean slate. For many people, one of those resolutions will involve the purchase of one of the new homes in Grand Forks ND. To help you stay true to your resolution, here are some tips to help you budget for that new home.

Start by making sure you have a clear understanding of your finances. It’s easy to lose track of the big picture so don’t just look at your monthly expenditures, though it’s also worth checking to see if there are cuts that can be made in categories such as groceries and entertainment. Be sure to look closely at things like credit card balances, savings accounts, and emergency funds. Now is also the time to check your credit score and make sure there are no surprises or errors and to work to build it up if there’s room for improvement.

Food and entertainment really can be stealth money pits. It’s important to have a clear idea of what you’re spending on each. If you realize you’re eating out often, it’s usually worthwhile to dine at home or take meals to work. Make meal plans for the week so you buy exactly what you need. This will often help you save a significant amount of money. Even if you enjoy dining out, make an effort to scale back during this period in which you’re trying to save money. The same goes for entertainment. If you go to the movies frequently or consider shopping a pastime, make a concerted effort to rein in your spending for a set amount of time. It will show up in your bank balance. Don’t forget to look at any recurring payments and consider more affordable alternatives or dropping something you don’t use frequently, such as magazine subscriptions, multiple streaming services, or an expensive cable package.

Go ahead and get used to what your likely monthly home payment will be. While obviously much will be an estimate, there are online sites that can help you estimate mortgage payments, property taxes, insurance, homeowner association fees, and home maintenance. Subtract your current payment for rent or mortgage and if your new monthly payments will be higher, start putting the difference into a home savings account to get you used to living on your new budget. This will help you make sure it is affordable.

Ideally, it is a good idea to set up a separate savings account, specifically for home costs and savings for your new home. Create automatic payments to that account to help you save money for your new home and home costs.You may even want to set it up with a different bank so that it’s out of sight and out of mind, other than the automatic transfers, so you’re less likely to dip into these savings.

A clear understanding of your current finances gives you a better understanding of just how much home you can afford and can help you find one of the ideal homes in Grand Forks ND that is right for you. Contact Crary Real Estate once you’re ready to make this resolution a reality.

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This post was written by Crary Real Estate

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