Saving For the Down Payment
When it comes to saving for your down payment, be prepared to ask yourself some hard questions. For example,
- Do I buy a new car or can get by with the old one for a few more years?
- Do I take an expensive vacation or would it be better to stay home this year?
- Do I really need to go out to lunch every day or can I bring something from home?
If you're really serious about buying a home, sacrificing a few of life's luxuries may be a necessity. But the sooner you do it, the sooner you'll have the cash you need to make your dream of homeownership a reality.
Building a Relationship With Your Bank
Creditworthiness begins with the basic building blocks of financial responsibility. That's why it's important to build a good relationship with a bank.
- Start With A Checking Account
Opening a checking account is the simplest way to begin building your relationship with a bank. You will find that paying for things by check is safer and more convenient than carrying around a lot of cash. It's also a good way to keep track of your money. If you've never had a checking account or had trouble opening an account because of a negative bank account history, check out our workshop "Check Wise." You'll learn the ins and outs of bank accounts, and have the opportunity to open or re-open a checking account.
- Don't Get Caught Short
Always have enough money in your checking account to cover your checks before you write them. When you overdraw your account, the bank returns your check for insufficient funds and will generally charge you a fee. As a result, you may be prevented from opening an account at another financial institution. If the problem continues, it could even affect your ability to qualify for a home loan!
