If you’re thinking about buying, investing or refinancing your home, we want to help you make smart financial decisions and think these are the tips to get you there. If you’re saving money for the purpose of a future financial home shift, your first thought should be to utilize your trusted lending professional. At West Coast Mortgage Group, we
help our clients make great decisions that create significant home ownership returns. We also understand that each season brings new challenges, and 2020 has been nothing short of new challenges. Here are our top 2020 budgeting tips and strategies.

Budgeting Tip: Make your money work for you, and get comfortable with the word affordability.

1.) Your money is valuable, pay your bills on time.
Does that part even need to be said? Just in case, we are going to start there. Once you are paying your bills on time, it is important that your money appreciates in value while in your savings account, so make sure you have the best account available to you. It is important once you start the home purchasing process, that you do not move your money around. So having your accounts set up the way you would like them is a great place to start. Also, by paying your bills on time, this builds your credit while your savings account simultaneously earns on your behalf.

2.) What does affordability mean?
When you look up affordability in regards to a home, you are given a mathematical calculator and only asked to input data. That makes sense to some, but sometimes it’s nice to understand what defines affordability. Affordability, according to dictionary.com is an adjective (descriptive word) that means, “can be afforded; believed to be within one’s financial means.” It is important to know what your
expenses are, including monthly and yearly. We work closely with our borrowers to help them plan yearly budgets that lead to home ownership.

3.) Private Lender vs. Big Bank
The age old question crosses every buyer/investor’s mind, Private Lender or Big Bank? It’s healthy to weigh your options and have confidence in your decision. Bank lending can be a pro because your money most likely already is physically located at the bank, therefore you already have that relationship. Banks depend on this advantage and use it to maximize their revenue, often using your relationship as leverage to promote their financial products, offering lending benefits wrapped in strict standards. Mortgage lenders bring flexibility and speed to the table and oftentimes can beat big banking rates, without the strict standards imposed on customers. Private lenders have the ability to customize loan recommendations to the buyer’s exact financial scenario and home-buying goals, making your valuable money stretch further.

Strategy Tip: Recognize the season, save what you can.

2020 Has been a tough year for everyone. Making sure you’re reviewing your financial budget every three months and planning for the season you are in, is vital to financial success. There are so many ways to incorporate joy and happiness into a personal or family budget. Don’t rule anything out until you give your budget a good scan for areas of improvement and work with a lending pro to get you pointed in the right direction. Make sure all your bills are scheduled to be paid on time and find new ways to save. Are you shopping at an expensive grocery market? Would you save money traveling another mile, by buying smaller, or maybe more in bulk? Review areas of your buying patterns and find new opportunities to save.

Life happens, which is why we are always here to help you navigate through each step of the home financing process, including budgeting for your financial future.
Education is very important to us and we pride ourselves on helping our clients understand the market and the financing process so they can make informed decisions. Let us know how we can help you!