How Important is it to Have a Budget When Buying a Home?
Do you know where your money goes?
Budgeting is about understanding how much money you have and where it goes, then coming up with a spending plan that works best for you. Making even small changes can have a positive impact on your overall financial situation.
Budget Benefits
A budget is a practical, hands-on planning tool that can help you:
- Gain control of your money.
When you have a budget, you know how much you have to spend, and where and when you spend it.
- Ensure you are living within your means.
A budget will help you implement smart spending and saving habits.
- Achieve your goals.
A budget is an action plan that can help your homeownership goal become a reality.
Getting Organized
Creating a budget and sticking to it doesn’t have to be complicated, but it does require some discipline. Here’s what you’ll need to do:
- Note all of your sources of income.
- Make a list of monthly expenses.
- Break expenses into three categories:
- Fixed — essential expenses that are not likely to change, such as rent, car payments, and utility bills
- Flexible — also necessities, but the amount may change from month to month, such as groceries, gifts and medical bills
- Discretionary — money you choose to spend but don’t have to spend, such as movies, new clothes, and eating out
- Total your monthly income and expenses.
If you are showing higher expenses than income, it means some changes will need to be made. - Make adjustments to expenses.
Look at your flexible and discretionary expenses to find areas to cut. - Review your budget monthly. Compare what you spent vs. what you planned to see where you did well and where you may need to improve.
Let Your Budget be Your Guide
Budgeting sets up money management guidelines for you to follow. It also uncovers hidden opportunities to get closer to your goals. But it needs to be flexible and realistic. Remember it’s a plan to help you reach your goals. It should not feel like a punishment. Small changes to your spending habits can make a big difference!
Ready for a home? Union Plus can help! The Union Plus Mortgage program can help you purchase a home while also receiving special benefits by virtue of your union membership, and save $1000's when you buy or sell with the Union Plus Real Estate Rewards.
Buying a home is a personal goal. You need to have enough money to achieve it. A good budget will help you keep your spending on track and help you free up money to reach your homeownership goal.
Union Member Goes from Living in a Shelter to Buying her Own Home
After becoming a trailblazing member of Utility Workers Union of America (UWUA) and the recipient of Union Plus Mortgage program benefits, Watson has honored her promise and is rolling out her own "Welcome" mat as a proud homeowner.
Becoming a Proud Homeowner
Watson's pact with herself was a bold one to make considering her situation, but the fact that homeownership in the U.S. is becoming increasingly more elusive, even for middle-aged Americans who have worked in this country for years, made the challenge even more difficult.
"I'm proud to say I am a homeowner," says Watson, now 26. "I finished school [a comprehensive construction course specifically designed for women] at the top of my class, which helped me land a great job as a steam mechanic. The job, in turn, provided a great union, which offered great perks. One such perk was the prospect of obtaining a mortgage through the Union Plus Mortgage program."
The Union Plus Mortgage program, with financing available through Wells Fargo Home Mortgage, has provided $43.6 billion in mortgages to help more than 200,000 union members and their families buy or refinance a home. It is packed with unique benefits tailored to meet the needs of active or retired union members, as well as their parents and children, who want to buy or refinance a home.
Some of the Other Benefits of the Union Plus Mortgage Program Include:
- Hardship Assistance
Union Plus Mortgage Assistance helps members and their families who are unemployed, recently disabled, on strike, or locked out make their mortgage payments with interest-free loans and grants. Mortgage Assistance has provided more than $11 million to help members keep their loans current and stay in their homes.
- Award Card
Union members and their families may receive a Wells Fargo My Mortgage GiftSM award card after closing -- $500 for buying a home, or $300 for refinancing your home – for use at participating retailers.1
Making her New House a Home in New York
In addition to keeping her promise of homeownership, Watson has also managed to achieve her other goals. She works full-time, becoming the first female lead steam mechanic in the history of her local union, and takes classes in pursuit of a Bachelor's Degree.
Learning More about Member Benefits Through Union Plus
Now that she's familiar with Union Plus, Watson is eager to turn her sights on a new pursuit and check out other Union Plus benefits. In particular, she's interested in discounts on vacation packages. "I work hard and I study a lot, but I think I deserve a chance to get away," says Watson. "I'm glad Union Plus discounts help to make getaways more affordable." Thanks to Union Plus, Watson can get away, but, more importantly, she can return from that trip to a permanent safe haven: her own home.
Union Plus provides a full array of consumer discounts, services, and special programs (including educational scholarships) to enrich the lives of working families.
1Eligible individuals can receive the Wells Fargo My Mortgage GiftSM award approximately 6 weeks after closing on a new purchase or refinance loan secured by an eligible first mortgage or deed of trust with Wells Fargo Home Mortgage (“New Loan”), subject to qualification, approval and closing, when identifying themselves as eligible. The My Mortgage GiftSM award is not available with any Wells Fargo Three-Step Refinance SYSTEM® program, The Relocation Mortgage Program® or to any Wells Fargo team member. Only one My Mortgage Gift award is permitted per eligible (“New Loan”). This award cannot be combined with any other award, discount or rebate, except for yourFirstMortgageSM. This award is void where prohibited, transferable, and subject to change or cancellation with no prior notice. Awards may constitute taxable income. Federal, state and local taxes, and any use of the award not otherwise specified in the Terms and Conditions (also provided at receipt of award) are the sole responsibility of the My Mortgage GiftSM recipient.
When Natassia Watson left her home in Jamaica to seek asylum in the United States, she found the only haven open to her was a New York City homeless shelter. Alone in a foreign country at age 19 without a steady job, a friend to lean on, or even a place to sleep, Watson promised herself, in the depths of despair, that she would return to school, get a good job, and attain the American Dream of homeownership.
A Better Way to Buy a Home -- With as Little as 3% Down
This low down payment, fixed-rate mortgage could help you become a homeowner sooner than you think. And even if you’re not a first-time homebuyer, this program is available to you!
A Unique Opportunity to Earn a Lower Interest Rate
Preparing for the responsibilities that come with homeownership is both important and encouraged. That’s why with yourFirst Mortgage, when you complete a formal homebuyer education course — and your down payment is less than 10% — you can reduce your final mortgage interest rate by 0.125%. Depending on what type of course you prefer, there are both online and in-person options offered.
More Features That Could Help You Qualify
- Your down payment and closing costs can come from your own savings, monetary gifts, and assistance programs
- The home seller can also contribute toward your closing costs
- Your income may include the income of others who will be living with you, like family members
- Your credit history may come from traditional sources like a credit report, and non-traditional sources like tuition, rent, or utility bill payments
One thing to keep in mind is that with a low down payment, mortgage insurance will be required, which would increase your monthly payment and the cost of the loan. There are options available that a knowledgeable Union Plus Mortgage Specialist can explain further, so that you can choose what works for you.
This is an exciting new loan option for homebuyers, whether it’s your first or next home. Contact a Union Plus Mortgage Specialist to discuss loan amount, loan type, and property type requirements to ensure eligibility.
And after closing on a home purchase or refinance loan through the Union Plus Mortgage program, you could be eligible for special benefits that include receiving a $500 My Mortgage GiftSM award from Wells Fargo approximately 6 weeks after closing, and access to mortgage assistance through Union Plus in times of hardship such as layoff, disability or strike. Keep in mind that parents and children of union members are also eligible for certain benefits.
Learn more about the Union Plus Mortgage program.
Request a Consultation Or Call 866-802-7307 To request a personal consultation
1Eligible individuals can receive the Wells Fargo My Mortgage GiftSM award approximately 6 weeks after closing on a new purchase or refinance loan secured by an eligible first mortgage or deed of trust with Wells Fargo Home Mortgage (“New Loan”), subject to qualification, approval and closing, when identifying themselves as eligible. The My Mortgage GiftSM award is not available with any Wells Fargo Three-Step Refinance SYSTEM® program, The Relocation Mortgage Program® or to any Wells Fargo team member. Only one My Mortgage Gift award is permitted per eligible (“New Loan”). This award cannot be combined with any other award, discount or rebate, except for yourFirstMortgageSM. This award is void where prohibited, transferable, and subject to change or cancellation with no prior notice. Awards may constitute taxable income. Federal, state and local taxes, and any use of the award not otherwise specified in the Terms and Conditions provided at receipt of award are the sole responsibility of the My Mortgage GiftSM recipient.
Information is accurate as of date of distribution. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2016 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801
If you’re looking to buy a home of your own, consider yourFirst MortgageSM, — a new mortgage option only from Wells Fargo, and available through the Union Plus Mortgage program.
IATSE Member Wins Union Plus' Labor Day Sweepstakes
International Alliance of Theatrical Stage Employees (IATSE) member Joseph D’Antonio of Pasadena, MD, is one of two lucky $5,000 winners of the Union Plus “What Kind of Union Car Are You?” Labor Day Sweepstakes.
In order to enter to win the contest, nearly 25,000 entrants completed a short quiz, which revealed their union-made car model personality type. Fortunately for D’Antonio, the odds were in his favor.
D’Antonio recalled his shock learning he had won $5,000 just for taking the car personality-type quiz.
“Yeah, it was pretty big, and I didn’t believe I had won at first. Union Plus is definitely a very beneficial resource to have. And on top of that, they have a contest that union members ‘actually’ can win!” he laughed.
D’Antonio found out about the sweepstakes when he came across it while browsing for discounts on the UnionPlus.org website. He’s an all-things-union aficionado who is enrolled in several Union Plus benefits programs. One of his favorite programs are the downloadable Goodyear tires and services coupons available on the Union Plus website.
Of the hundreds of union-made vehicles, he learned the model that suits his personality type most is actually a Cadillac CTS, which doesn’t entirely surprise him.
“Cadillacs are one of my favorite cars in the first place, so it worked out perfectly. I think they’re very stylish, sophisticated, and upscale. My very first car was a Cadillac, and that car seems to suit me pretty well,” D’Antonio says.
D’Antonio says he plans to put the money toward paying off his car. He would like to trade it in for a new one eventually, and will definitely take advantage of the Union Plus Auto-Buying Program, which offers special rebates and savings to eligible union members.
The prize money for this contest was provided by TrueCar, the provider of the Union Plus Auto Buying Service. Union members looking for a great deal on a vehicle save an average of $3,279 off MSRP and receive special rebates for buying union-made. Click here to learn more!
International Alliance of Theatrical Stage Employees (IATSE) member Joseph D’Antonio of Pasadena, MD, is one of two lucky $5,000 winners of the Union Plus “What Kind of Union Car Are You?” Labor Day Sweepstakes.
