How to Financially Prepare to Buy a House in Today’s Market

It’s no secret that buying a home today has its own set of challenges due to the shortage of houses in the market. Not only that but the continuous increase in home value over the past few years has presented an additional challenge to prospective home buyers: how can you afford it? If you’ve been uncertain as to where to even begin, there’s still plenty of time to get started and make your way to being financially prepared to buy a home.

Create a budget to get started

It seems simple because it is. It’s also very important as a first step. Having a solid plan in place to save up a particular amount of money on a home can give you some sense of direction. One way to do this is to consider what time of home you’d like to live in and then begin saving accordingly. Do you live alone or with a spouse? Do you have kids? Are you planning to have kids in the near future? Once you have come to a set of answers to these basic questions, you can then start looking around your neighborhood for homes that will provide the adequate space you need. This will give you an idea of how much you’ll need to save for just the listing price. You’ll also want to consider things like a down payment, appliances, HOA fees, and the like that go along with the cost of living in a new home.

Side gigs have the potential for a boost

Depending on your situation, you may be in a good position to do a little work on the side to add extra dollars into your bank account. Perhaps doing a few Grub Hub or Door Dash deliveries on the weekends will contribute to your savings for a home. Many opportunities exist to work from home and participate in different odd jobs. Babysitting is another option. Whatever suits your interests, every little bit helps in your journey to owning your own home.

Career advancement

Another way you can better financially prepare is by seeking ways to advance in your career. Whether that means taking a pay raise in your current job or advancing to a new position within the company, getting a bump in pay certainly can’t hurt your ability to save back some money for a down payment on a home.

For more information or to answer questions about buying a home in today's Portland real estate market, contact my office today.

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