Today on My Greenville Home Radio, Dan is speaking with Jason Reimers from Royal Alliance Jennings Cook Financial Services. Jason is a Certified Financial Planner and has been in business for about 11 years. He and his father started Royal Alliance, a subset of Jennings Cook CPA, to help their clients save money for retirement and other big moments in their lives.
How do you know if you’re financially ready to buy a home?
When it comes to buying a home, coming up with the down payment is the biggest hurdle to overcome. The first step is to determine the price of the home you can afford and what the corresponding down payment would be. A 20% down payment used to be commonplace, but according to bankrate.com, 75% of first-time homebuyers put down an average of 6%.
From a financial planning perspective, the more down the better. Money invested in your home builds equity and keeps your monthly mortgage payment low. However, balance is key. Money in your home is beneficial, but not to the detriment of your savings and emergency funds.
How to save for your down payment.
Like any major savings push, creating a budget is key. Determine where you spend your money and how you can cut back to begin setting aside some money each month. The amount you are able to set aside each month will give you a good indication of when you may be able to purchase a home.
Depending on your timeline, you have a few options for growing your wealth. If you are just a year or two away from being able to afford a home, make that budget and stick to it – cash is the way to go. However, if you are more like 3-5 years out from buying a home, consider investing in stocks and bonds. Bonds and the slightly more risky stocks can help you grow your wealth quickly in a short period of time. A financial expert like Jason can help you determine the best course of action for your family and financial goals.
These are just a few of the tips Jason shared on this week’s episode! Listen to the whole interview to discover how to save well for a home!
*Securities offered through Royal Alliance Associates, Inc., member FINRA and SIPC. Branch Address: 1212 Haywood Rd, Suite 500, Greenville, SC 29615
Dan Hamilton is the founder of Hamilton & Co. and the lead listing agent for the team. He is the only agent in the Upstate endorsed by Shark Tank star and real estate mogul Barbara Corcoran. Additionally, Dan hosts a weekly radio show on The Answer 94.5 and 106.3 WORD giving tips and advice on real estate and is a frequent contributor for real estate on Your Carolina TV show on WSPA Channel 7.