Saving for your downpayment
Money Saving Tips For A Down Payment On Your Future Home
If owning a home is your dream and you’re currently strapped for cash for your down payment, then you’ll have to save for a while. Many people would love to own a home, but that down payment is what’s stopping them! Don’t let the down payment deter you from your dreams of own your own home and allow these useful money saving tips. Before you know it, your savings account is going to have the perfect number for that dream home you’ve always wanted!
Transfer to your savings account each month
The easiest way to start saving for that down payment is by transferring a fixed amount into your savings account each month. Better yet, set up an automatic deposit so that you always know something is going into that account each month.
Go through your budget and lower your expenses
Sit down and review your expenses and budget. Cut out anything you don’t need and use that extra money to put in your savings that month. Budget wherever you can and always use that extra money you’ve saved to go toward your down payment savings account!
Borrow from a retirement plan
If you have a retirement plan, you can always borrow from it. Simply look out for penalty-free withdrawals that allow you to pay it back in time. Think 401(k)s or profit-sharing plans that allow you to borrow for a home. If you’re not sure where to find this info, your company’s HR department can help.
Reduce high-interest rate debt
Pay off your high-interest rate debt so that you can start saving more money for your down payment. And when you’ve paid it all off, close the card and then focus on paying off the next one. And if you have to, transfer your balances to a card with the lowest rate!
Get down payment assistance
If you’re a first-time homebuyer or served in the military, you might be able to qualify for down payment assistance. You can check with the Federal Housing Administration, the Veterans Administration and more. Do your research and check what sort of assistance is out there. Chances are, you’ll be able to get help and have to save less for that down payment!