Is buying a home on your list of goals for 2021? Or maybe you just want to put yourself in a great financial position so you’re ready to buy when you find your dream home. Your down payment is the key to what kind of home you can afford, and saving should be exciting (not scary!).
Wondering how much down payment you need? Talk with a mortgage lender to learn about your loan options based on your financial situation. Feel free to reach out to me and I can connect you with a loan officer.
Identify your savings goal
This is the most important decision! How much do you want to put down on your house? Your down payment amount sets the stage for everything - what type of loan you qualify for, how much house you can afford, etc. Figure out what your number is, then continue on to the next tips to set your roadmap.
Put your savings on autopilot
Looking for a quick savings tip? Set up a down payment savings account and a monthly automatic transfer. If you’re able to “set and forget” your savings every month, you will always have money flowing into your savings account and you’ll get to watch it grow!
Cut your expenses
You probably knew this was going to be on the list, but it has to be. It’s hard to save a large chunk of change without making a few cutbacks. You’ve heard all of the tips, like going out to eat less, making coffee at home, and so many more. The hardest part is actually cutting back, but it’s so important when you’re saving up for a down payment. Here are a few more ways to cut back:
Cut unused memberships or subscriptions
Downgrade your cell phone, Internet, or TV plan
Reduce your energy and water usage
Review your insurance plans to see if there are less expensive options
Start a side hustle
Side hustles are a regular occurrence these days, and it’s no wonder why - who couldn’t use some extra cash? Food delivery is a very popular way to earn money, especially since so many more people are ordering delivery right now. Looking for other side hustles?
Put your skills to work - find freelance roles like virtual assisting, tutoring, proofreading, writing, graphic design, and more.
Sell unused items
Work as a house or petsitter
Find more ideas here!
Stick to the plan!
Cutting expenses, taking on extra work, changing your lifestyle - I know these aren’t easy. But think about what’s at the end of the road: your own home! Taking control of your financial future means you get to chart your own path. Even though some of these things require a sacrifice, just remember that you’re doing this for an amazing reason.
I’m always here to have a conversation about your homeownership goals - reach out to me at 8Z Real Estate! I would love to learn more about how I can help you along your real estate journey.