Your Lake of the Ozarks Mortgage Lender: saving for a new home

Monday, February 6, 2017

Saving for a Home: 5 Money-Saving Tips

When you decide you're ready to take the plunge and purchase your first home, you need to think about saving for a downpayment. Buying a home at the Lake of the Ozarks is a big investment and the more you can put down upfront, the more you can save on your home purchase. In today's blog, your favorite mortgage lender at the Lake of the Ozarks offers a few money-saving tips to help you start working on that downpayment.

1. Establish Goals.

Figure out how much you need to save for a down payment. It’s easier to save with a goal in mind than to just save a little here and there. Talk to a mortgage lender about a pre-approval, so that you know about how much you can borrow. You also want to think about how much of a monthly payment you can easily afford. Once you determine the price range of homes you'll be in the market for, you'll know about how much you should save for a decent downpayment.

2. Set a Time Frame.

How soon do you want to be in your new house? If you know how much you need to save and how long you have, you’ll be able to set monthly savings goals. Make sure your time frame is realistic. Saving enough money for a downpayment in just a couple of months probably isn't going to work. Give yourself enough time to start out slowly and work your way up to enough savings to purchase a home at the Lake of the Ozarks.

3. Find a Safe Place to Store Money.

A jar in your bedroom might not be the best place to store your savings, as you can easily dip into it. You also don't want a lot of cash sitting around where it could easily be lost or stolen. Consider a typical savings account or a CD, something without much risk. While other investment options might offer a better return on your money, you don't want to risk losing your savings either. Consider talking to a financial advisor about your best options.

4. Make Room in Your Budget.

You might have to cut back on some expenses in order to save enough each month to meet your goals. If you don't thoughtfully create room in your budget for savings, that money can easily just get spent on something else. Think about the things you buy each week; of those things, what items are unnecessary wants? Do you want those things more than you want a house? Think about that each time you want to buy something. Prioritize your purchases and add that extra savings to your house fund.

5. Set Up an Automatic Savings Plan.

You could allocate a certain amount or percentage of each paycheck to go directly into your chosen savings account. Many banks offer a savings plan where money will be automatically transferred from your checking account to your savings account at the beginning of the month. You can set the amount to be transferred depending on how much you can afford to set back each month.

If you're currently saving for a home, talk to your Lake of the Ozarks mortgage lender about your options. The pre-approval process is the first step in a successful home buying experience. As your local lender, I'll work with you every step of the way! Give us a call today at 573-746-7211 to get started.

For Lake area news, resources and tips on financial services, please

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct: (573) 746-7211

Cell: (573) 216-7258

Fax:(866) 397-0318

Email: mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

Thursday, August 6, 2015

Planning and Saving Tips for Buying a House

Buying a house is one of the largest investments you'll ever make. It takes time and planning to save up enough for the downpayment and all the other upfront costs associated with purchasing a home at the Lake of the Ozarks. Here are a few tips to keep in mind if you're planning to be in the market for a new home in the near future.

Mortgage Planning Tips

Building sound finances and a solid credit score before you buy will allow you more freedom in choosing the home you want. Not only will it help you to afford more home, it will also help you compete better in the market for the house you want, make it easier to handle the up-front costs and reduce the stress that comes with such a big decision.

Saving for a higher downpayment could mean lower APR and payments.
Maintaining a steady and reliable income will improve your standing with the lender.
Combining your stated income with a partner or spouse can be an advantage.
Consistently paying your bills on time and limiting your debt helps improve your credit score.

Saving for a New Home

Planning to start saving up for a new home is a lot easier said than done. There are several things you can start doing now to get you on the right track. Here are a few tips to get started saving today!

Open a Separate Savings Account - One of the biggest issues with trying to save money is having it easily accessible. By opening a separate savings account for your new house, it will be easier not to dip into the money whenever you feel you need a little extra for something.
Review Your Spending Habits - How much money do you spend on Starbucks each week? How many times do you eat out in a month? While it may not seem like you're spending that much on any given day, those little amounts can add up quickly. Look over your spending for the last month and see where you could make some cuts to help with your savings efforts.
Create a Budget - To save money, you need to spend less than you earn. By setting up a budget and allocating a certain amount of money to each of your monthly expenses, it's easier to stay on track. Electronic bill pay is a great tool to use. There are also several great budgeting programs out there to help you get started!
Start Living Frugal - In addition to cutting back to just the necessities, look for items that are on sale and start cutting coupons. Just like those cups of coffee can add up, so can saving 50 cents here or there on the things you're already buying.
Save Any and All Extra Money - When you receive that end of the year bonus or your annual tax return, it's easy to want to splurge a little. Rather than spending that money, add it to your home savings. This will help you increase your savings faster, while not cutting into your regular monthly budget.
Consider Downsizing Before Upsizing - If you don't have kids and can afford to have less space temporarily, consider downsizing. Moving from a two-bedroom apartment to a 1-bedroom apartment could save you as much as 20-30% on rent. That extra money you would have been spending on rent, can now go towards your house savings.
Try Working More - Saving more is easier to do when you're making more. If time allows, consider getting an extra, part-time job for awhile. You can also consider starting an at-home business, for example selling crafts, quilting or babysitting.

While you may be working hard to save up enough money for a downpayment, you're still going to need financing. As your Lake of the Ozarks mortgage lender, it's my job to find a loan that you can comfortably afford. When it comes to your financing needs, I am here to help every step of the way. Contact me today at 573-746-7211 to discuss your Lake of the Ozarks home loan options and start planning for that new home!