December 12 2023
The holiday season is a time of joy, festivities, giving – and often considerable spending. If you’re looking to buy a home during this time or early next year, managing your finances and taking control of your spending is even more crucial. At Homewise, we know how important it is to make every dollar count, especially if you’re saving for a home. To make things easier, we’ve put together a smart spending guide for home buyers this holiday season.
Set a Holiday Budget and Stick to It:
Entering this holiday season, it’s wise to create a budget for all your holiday expenses. Include your general expenses, holiday spending, and your home buying savings fund. This will help you allocate a reasonable amount for holiday gifts and celebrations, ensuring you stay on track for your home purchase without worry or guilt.
Take Advantage of Holiday Deals and Promotions:
The holiday season is a prime time for sales on major home appliances and furniture. This can be a great opportunity to save on big-ticket items like refrigerators, couches, or mattresses. However, stay grounded and don’t be swayed by all the promotions. Remember, if it’s sitting on your credit card, it’s costing you.
Avoid Extra Debt and Monitor Your Credit Score:
The hustle and bustle of holiday shopping, parties, and hosting can strain our credit cards. It’s important to keep your credit card usage in check and avoid new debt during the holidays. Your credit score is a crucial factor in securing a mortgage. Ensure bills are paid on time and in full, especially if a home purchase is in your near future. Be extra cautious during the holidays as increased spending could impact your credit score and your chances of mortgage approval.
Scale Back on Your Holiday “Extras”:
While it can be tempting to go all out for the holidays, consider cutting back on “extras” like decorations, extravagant gifts, or holiday trips if you’re planning a home purchase. Setting a gift budget with family and friends or making gift giving thoughtful yet less extravagant can help. These are short-term sacrifices for the long-term benefit of owning a home.
Consult a Mortgage Professional for Advice:
Seek real estate and mortgage advice from professionals like our team at Homewise. We have the expertise to guide you through the home buying and mortgage approval process and can provide personalized advice to help manage your finances during the holiday season.
By implementing these tips, you can get through the holidays this year without compromising on being financially ready for a home purchase. Remember, every dollar saved brings you one step closer to realizing your goal of owning a home.
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