One of the hardest parts of the home buying process is saving up for a down payment. While renting may seem like the easier choice, buying a home may be the most gratifying purchase of your lifetime. Instead of daydreaming over paint samples and tile options of a home that seems just out of reach, why not be proactive and start the saving process? Here are some helpful tips on saving up quickly.
1.) Fake your mortgage - If you know how much you would like to spend per month as a mortgage payment, put that amount into a savings account every month. Set a payment date on the calendar and always “pay” on time. Whether that is the first of the month or the day after pay day, as long as you don’t miss a payment.
2.) Save your bonus - Take your holiday bonus from work, your tax return or any Christmas or birthday gifts of money and add it into your savings account.
3.) Take control of your spending - Instead of dining out every night, start cooking your meals at home. Put the money you would’ve spent at a restaurant into your savings account instead. Every time you have some extra spending money and would like to go on a shopping spree, instead put that extra money away.
4.) Get a second job - If you have some extra time on your hands, get a second job where your entire paycheck can go towards your down payment. This doesn’t have to be long term! Anything will help you reach your goal.
Saving for a down payment isn’t easy. You will have to make some sacrifices, wearing those old shoes in your closet you haven’t worn in awhile instead of buying the new pair you’ve been eyeing and spending the extra time making your meals at home. In the long run, it will be one of the best things you will ever do.
On top of all that you can do for yourself, get educated on the different loan programs you may be eligible for. Most consumers think they need significantly more money for a down payment on a house than is actually needed. We can help connect you with local lenders to assist you through the lending process.
I hope these tips will give you the motivation to start saving and turn those paint samples you’ve been collecting into painting the walls of your first home.