How to Save For Your Upcoming Move

There’s no question that moving is expensive. Between buying a new house, paying for the movers, and any new furniture or appliances, and potential HOA fees, there’s almost no way to move without having to budget and save first. Keep in mind you will have a mortgage loan to help with the costs, as well as profits from the sale of your previous home if you currently own a home, but that ultimately won’t mean that you shouldn’t plan your budget months or even a year in advance.

Put 20% Aside for Your Down Payment

Consider your budget for your new home, taking into account that you will almost certainly be applying for a mortgage loan. In most cases, you’ll pay somewhere between 10 and 20% for your down payment, so for the sake of being prepared, it’s best to set aside about 20%. This can also help you get an idea of what your budget is for the house overall. A good rule of thumb is to pay no more than 25% of your monthly take home pay for your down payment. Calculate that number times 5 (if 20%) or 10 (if 10%) and you’ll have a realistic budget for your house.

Consider The Costs Beyond the House

The biggest expense when moving will, of course, be buying the house. However, you’ll have to budget for much more than the down payment of the house. Consider the cost of the moving company, packing supplies, HOA fees, home insurance, and any other fees that might occur. If you’re moving long distance, you should even budget for the cost of the gas for your own car as you drive from one location to the other. Keep in mind, too, that movers are often tipped, and you’ll want to take the gratuity into consideration as well.

Start Looking for Savings

Of course, there are ways to save money on your move. Ask if there are any empty boxes at work that you can use for packing, or check with local stores that often have used boxes piled up in storage. If your budget is a little too tight for a moving company, find friends who will help you move or consider renting a van. Need new furniture? Consider looking at thrift stores or discount furniture stores rather than name brands. Set out a clear idea of the things you want in your new home and the things you absolutely need so your realtor can help you find something that fits your needs and your budget.

Get Pre-Qualified and Pre-Approved

Time to search for mortgage loans? Many homeowners get pre-approved before they make an offer on a house, but not pre-approved. Pre-qualification tells you the kind of loans you’re eligible for and might have a rough idea of the kind of support that loan will offer. Pre-approval offers a much clearer picture. Pre-approval also instills confidence in the seller, so when you do put in an offer on your dream home, it will look that much better.

Worried about staying on budget for your upcoming move? Work with a College Station realtor. They can help you search for a new home with your budget in mind and support you during the offer process to get the best deal for you.