Saving up to buy a home can seem like a daunting task. But there are easy ways to help you pocket the money you need to take the next step towards home ownership. Here are a few tips to help you save for your home’s down payment:
Know your goal. Before you start, have an idea of how much money you would like to save towards your down payment, and the timeframe in which you would like to save towards it. Familiarize yourself with what homes are selling for in the neighborhood you would like to be in. But remember: Your house expense shouldn’t exceed 28% of your stable monthly income, so be realistic when examining potential areas.
Budget. Set up a budget to make it easier to allocate money to your savings. One good tip is to set up a direct deposit into your savings account, so you are automatically transferring a portion of your pay. That way, you can save without thinking!
Pay off high interest debt. One thing that may hold you back from saving for your down payment are high interest debts. High interest loans can eat into your potential savings, so try to prioritize your debt, or ask your bank or credit union to see if they offer help or debt consolidation.
Curb your spending habits. Though it may be tempting to use your tax return on a pricey item you’ve been eyeing, do your best to resist. If you bank all of your extras like bonuses, commissions, and tax returns, you can help build up your savings quicker.
Meet with a Mortgage Consultant. Meet with a Mortgage Consultant to determine your options. There are programs that can help make your dream of home ownership a reality, even if you can’t afford a 20% down payment. Reach out to a Mortgage Consultant to see how you can afford your home with a lower down payment!
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