Buying your first home is an exciting time as you think of what your home will entail and dream of your ideal Evanston location. You’re ready to begin your home search and are anxious to get a great deal since you’ve heard stories of our current buyers market.
Yet, before you jump right into to searching for an Evanston home, you’ll want to make sure that you’re fully prepared. As Evanston Real Estate agents who also service surrounding North Shore communities, we see first time buyers who haven’t taken the necessary time to get their finances in order. Having an organized budget and system for your earnings will allow the home buying process to run much more smoothly.
Recently an article by Gabriela Islas, financial writer for Quicken Loans, pointed out some great tips for approaching your personal finances. If you are considering buying a home in Evanston or any of the surrounding North Shore areas, these tips will help you get organized before you begin the home buying process.
1. Check your credit report and fix any errors- By law, consumers have the right to a free annual credit report. Take advantage of getting a free credit report, but always be sure to check out its accuracy. Many times, there are errors or may contain outdated information, which could affect your score negatively. If you do find a mistake, make sure you contact the corresponding credit bureau in order to dispute the errors.
2. Review your budget- It’s helpful to make time to sit down and check your monthly budget. If you are saving to buy a house, for example, periodically reviewing your budget will help you get rid of unnecessary expenses allowing you to save more.
3. Review your monthly withholdings- There is no reason for you to give an interest-free loan to Uncle Sam! By reviewing your monthly withholdings you may be able to put more money in your pocket or savings account every month. Of course, consult with your tax advisor before making any changes to your withholdings in order to avoid owing money to the IRS at the end of the year.
4. Review your financial emergency plan- Planning for unexpected events can give you peace of mind. A good rule of thumb is to have six months worth of expenses saved in an emergency fund. Think about your monthly expenses (like rent or mortgage payments, utilities, car payments, insurance, credit card payments, etc.) and figure out how much you would need to have in a savings account in order to pay for these items for six months. Don’t get discouraged if it takes time to build up your emergency fund, ANY amount is better than no savings at all. Also, make sure that if you become incapacitated, there is someone you trust to handle your finances.
5. Sign up for paperless statements- Signing up for paperless statements and paying your bills online will help keep your mail under control while saving trees at the same time. A lot of banks and credit unions offer online bill pay services for free. Take advantage of this and join the “green” movement.
6. Consolidate accounts- When you’re budgeting, sometimes it’s helpful to separate accounts. For example, if you are trying to save for a special purchase or an emergency fund, you may have your employer deposit a portion of your paycheck directly into your savings account. But having many accounts can make keeping track of them difficult. When that becomes the case, it’s time to consolidate your accounts. Before making this decision, check with your financial institution to make sure there aren’t any penalties or fees for canceling an account.
As Evanston Real Estate agents, we hope these tips help you begin your Evanston home search on the right foot. We understand that buying your first home can be a little overwhelming at times, so feel free to contact us today so that we can help walk you through the entire home buying process.
We hope to hear from you soon!
The Thomas Team
@ Properties
@ Properties
Chicago's #1 Real Estate Brokerage
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