The new year means new goals; everyone wants to start 2023 on a high note. Many hope to reach new life milestones, and creating new year's resolutions are great ways to make these milestones more manageable. Setting resolutions not only motivate people to accomplish their yearly objectives, but it's also a focused way to prioritize what's important.

If you're reading this article, buying a home has crossed your mind at least once or twice, but you may feel it’s out of reach. So. how can you break it down into a process that makes your long-term goal more achievable? We're here to help you out with that. If you're looking to purchase a home soon, here are a few things you can do to prepare for a smooth home-buying process.

1. Get a Handle on Your Existing Debt

Before beginning your journey towards a big purchase like a house, it's wise to know your other outstanding expenses and debt. Consider its impact and how it'll affect you financially in the future. This comes in forms such as:

• Student Loans

• Car Payments

• Rent Payments

• Credit Card Debt

• Other Consumer Debt

Knowing this can come in handy, especially once it's time to meet with mortgage lenders because they are the ones that take a close look at the debt amount you already have. Remember, the more debt you have, the less likely you're able to afford a home. Another term for this is the debt-to-income ratio. To find the individual debt-to-income ratio, add your monthly debt payments and divide it by the total of your monthly paycheck (before taxes). According to the Consumer Financial Protection Bureau, lenders will cap borrowers at 43% of their total debt. If you exceed this number, consider minimizing that debt before applying for a mortgage loan.

2. Begin Your Budget Plan

Another consideration is creating a budget to prioritize your expenses and save money for a down payment. While budgets seem limiting, they're designed to help you reach the ultimate goal. Plus, imagine how worthwhile it'll feel when that moment arrives. Buyers will set sail on the fast track to home ownership once they have enough money to purchase.

While there are many helpful budgetary apps to track your spending, doing something as simple as creating an Excel spreadsheet or tracking targets in a notebook is also effective. Everyone is different, so find the method that works best for you. Remember, only spend what you intend.

3. Reduce Monthly Expenses

Once you make your budget, you can boost savings even more by lowering typical expenses. Yes, that means making the occasional sacrifice for things that aren't necessary to your daily lifestyle. Whether it's an additional day for eating out or that daily Starbucks coffee pick-me-up, the little expenditures can add up, even as much as thousands of dollars per year. That's money that can be extremely helpful in a home savings plan.

Here are a few ways to be mindful of overspending:

• Limit nights out at bars and restaurants

• Use your debit card instead of a credit card for indulgent spending so credit card payments don't get too out-of-reach

• Take off monthly expenses that don't get used, like cable and unused magazine subscriptions or gym memberships

• Set meal plans that consist of inexpensive yet healthy groceries

4. Set Yearly Goals/Timelines

For times of inspiration, don't be afraid to set up a list of goals or even a timeline plan that will help you stay on track. You can keep it on your phone or even write it out and hang it up. The idea is to have it in an area where you'll always spot it. This way, you're reminded daily of why you've worked so hard to stay financially savvy.

It also doesn't hurt to mention your goals to your closest friends and family so they can support you. They want to see you succeed as much as you do, so they can help hold you accountable. Plus, having others cheer you on is much more motivating than navigating this process alone.

5. Design Your Home Wishlist

Start picturing and planning what you want for your dream home, whether it's floor plans, home styles, or even design choices. It's fun, exciting, and encouraging. Plus, it will make your home search less daunting if you already know what you want.  

If you need guidance finding what's suitable for you, connect with one of our agents today. You can either contact us through our website or give us a call at 210-801-9115. Our experienced real estate professionals can help you devise a plan and guide you through the unique process of buying your dream home.