6 Savvy Ways to Save for Your Down Payment

Buying a home is probably going to be your first big investment. You want to stop paying rent and start investing in your own place, but you may be putting it off because you already have so many bills and you don’t think you can afford to start saving for a house.

Don’t give up hope. With some planning and a little discipline, homeownership could be in your near future.

Before you start, find out your goal. Sit down with a financial advisor and discuss how much you qualify for, and consider fees and down payment. Then make a plan to save.

1. Set goals. By determining the amount that you need to save and giving yourself a timeline to stick with you can track your progress. If you want to purchase your home in 3 years, you can calculate how much you need to save each year and monitor how much headway you make each year.

2. Create a monthly budget. Make sure it’s reasonable and includes everything you absolutely need, even rare treats.

3. Cut out expenses, especially big ones. Your entertainment and vacation budget can take a hit while you save.

4. Set up an automated savings plan with your bank. Every time you get paid, a certain amount, or a certain percentage, will automatically be transferred over to a savings account. Dedicate that savings account to your future home.

5. If you get any extra money, like a tax check or a bonus at work, put that into your dedicated savings account.

6. Let your friends and family know. You may be able to avoid some expensive temptations if you let everyone know that you really need to save your money right now.

If you plan to buy a home and just have questions, call Midland Mortgage. We have been making people homeowners for over 30 years. For our services, see our homepage.

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