{"id":689,"date":"2019-11-19T08:16:33","date_gmt":"2019-11-19T08:16:33","guid":{"rendered":"http:\/\/www.unitedfinances.com\/blog\/?p=689"},"modified":"2019-12-20T20:47:15","modified_gmt":"2019-12-20T20:47:15","slug":"why-you-should-start-saving-for-a-house-today","status":"publish","type":"post","link":"https:\/\/www.unitedfinances.com\/blog\/why-you-should-start-saving-for-a-house-today\/","title":{"rendered":"Why You Should Start Saving for a House Today"},"content":{"rendered":"

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Becoming a homeowner is a goal that many Americans have and look forward to. Not only can it contribute your financial health (when executed properly), but it can also lay the foundation for your growing family, be the backdrop of your favorite memories, and become a lifelong project that you\u2019re completely proud of.<\/span><\/p>\n

But buying your own property requires a lot of personal and fiscal responsibility, from learning how to read the housing market, to <\/span>applying for loans<\/span><\/a>, to figuring out how much down payment you can afford\u2014not to mention that buying a house typically requires a <\/span>substantial <\/em>amount of capital.<\/span><\/p>\n

If you\u2019re considering being a homeowner at any stage in your life, it\u2019s important to start saving up now. Here\u2019s why.<\/span><\/p>\n

Housing prices change<\/span><\/h2>\n

If you pay any attention to finance or real estate news, you probably know how much of an impact the housing market has on economics in this country. And with that, you\u2019ve probably heard about how much the real estate market can fluctuate over time. Housing prices dip and rise pretty much constantly in the United States, making the right time to buy practically unpredictable for potential homeowners.<\/span><\/p>\n

This is the first reason why we recommend building your savings right away. If you have a substantial home savings, you\u2019re in a better position to buy in a buyer\u2019s market when you\u2019re likely to find a better deal when you\u2019re <\/span>searching for real estate<\/span><\/a>.<\/span><\/p>\n

Let\u2019s say you find the ideal cottage on the coast that you\u2019ve always dreamed of: the market is in your favor and the price is right, but you don\u2019t have enough money to make a down payment on the house of your dreams. Contributing just a small amount to your savings from the time your in your twenties could put you in a better position to buy if a situation like this were to happen to you!<\/span><\/p>\n

Better financing options<\/span><\/h2>\n

Another plus to building a home savings in advance is that it could enable you to get better financing options because you\u2019d be able to make a more substantial down payment. Jumbo loans, though they allow you to put less money down, can end up costing you more money in the long run if you incur higher interest rates or take longer to pay off the loan.<\/span><\/p>\n

Having a bigger down payment can even help you secure a <\/span>better bad credit loan<\/span><\/a> if you have enough savings to buy a house, but your credit doesn\u2019t qualify you for other loan types<\/a>.\u00a0<\/span><\/p>\n

Edge on the competition<\/span><\/h2>\n

Many <\/span>sellers<\/span><\/a> prefer cash offers rather than credit because they are less likely to fall through than loans are. If you\u2019re able to <\/span>save money<\/span><\/a> to buy a house outright, you\u2019ll likely fare better if there are multiple buyers putting an offer in on the same house.<\/span><\/p>\n

Tax benefits<\/span><\/h2>\n

Another advantage to building your home savings is cutting down on your tax bill. If you live in a state with first-time homebuyer benefits, you can put your money in an FHSA (<\/span>First-Time Homebuyer Savings Account<\/span><\/a>) to avoid getting taxed on the income that you put toward your home savings. This money can be used for down payments and other homeowner costs. If you withdraw from the account for another purpose, you may face penalty fees.<\/span><\/p>\n

Financial stability<\/span><\/h2>\n

If you choose to stowe your home savings in a traditional savings account, you\u2019ll have more flexibility to spend your savings on other things you may need (besides a home). If you encounter some sort of financial emergency, like medical bills for example, you could employ your home savings as necessary.<\/span><\/p>\n

How you can start saving<\/span><\/h2>\n

Ready to launch your home savings? Here are a few tips to help you do so:<\/span><\/p>\n