How to Save for a House

Saving for a house can be very intimidating for most future homeowners. A home is likely the most money you’ll ever spend in your life on anything. So where can a first-time home buyer begin? BancFirst has prepared these tips for learning how much you can afford and how to save for your home. With some smart planning, help from experts, and close monitoring of your spending habits, the first home of your dreams may not be as out of reach as you think.

Learn How Much House You Can Afford

To begin your home buying journey, you need to learn your range of affordability. There's nothing worse than searching for your dream home and realizing too late that you ended up looking at homes you can't actually afford. One important point to keep in mind is that just because a mortgage lender says that you can take out a mortgage for a certain amount, doesn’t always mean that you should. To avoid this common mistake, BancFirst offers various tools to ensure you know how much house you can afford ahead of time.

To ensure you meet your financial goals, you will first need to establish your budget. Use the BancFirst Money Management tool to track spending and create a practical budget. Additionally, our mortgage calculators will give you an idea of what your monthly payment might be and explore how other costs will add up. It’s also important to consider the length of the mortgage loan you feel comfortable paying off.

Pick The Ideal Mortgage Lender for You

The benefit of having a BancFirst mortgage loan is that we package loans in-house with consideration of our underwriters, so we have more control during this process. Choosing the right mortgage loan officer to stick with you throughout this exciting process is a crucial step in the home buying journey since they can expertly guide you towards the most reasonable rates as well as things to watch out for during the home loan pre-approval.

If you're in a time crunch, you are going to want to get a majority of the busy work out of the way early on. If you want to appear more serious to those selling their homes, you should first secure a mortgage pre-qualification. This also benefits your lenders because they will now have all the information needed for when you decide to apply for a home loan. In addition to ensuring your credit score is mortgage-worthy, a lender will ask you for information like your social security number, employment details, bank account numbers, tax returns from the past two years, and your intended down payment.

Utilize a High-Interest Savings Account

All the money you’re saving toward your new house needs a safe place to grow. While most people have a savings account, trying to save for your home down payment within a year requires a higher interest rate option. Typically, a traditional savings account will offer lower interest rate, while a high-yield savings account or CD can provide a significantly higher rate. Buying a house in Oklahoma can truly be within reach if you plan ahead and are dedicated to saving and being financially responsible. At BancFirst, we are here to help you navigate all of life’s milestones, including buying your first home. Contact us today or visit us at an Oklahoma branch to get started.