6 Top Ways To Save For A House And Help Fund Your Down Payment
Buying a home is likely to be one of the biggest financial decisions that you make in your life. On top of saving for a down payment, you’ll also want to have money in your account to handle closing costs and repair fees so that you can be sure that your house is move-in ready. Knowing how to save for your house purchase puts you in the right position to begin looking at homes with the full intent of being able to make an offer.
Figure Out How Much You Really Need
Many people delay buying a home because they don’t think they can afford a 20% down payment, especially with some of the higher-priced homes you’ll find today. However, you might not need that much. Certain home loan programs allow you to skip making a down payment or put nothing down at all. Knowing what you need gives you a better starting point for creating a savings plan.
Get Serious About Your Budget
Most people’s budgets have a little fat that they can trim. If you’ve whittled your budget down in the past, then you already know what to do. Sit down and create a list of your expenses. Then, decide which ones are necessities, and cut out any that don’t make the list. Forgoing dinners out and other unnecessary activities can help you keep more money in your bank account.
Consider Temporarily Downsizing
Sometimes, you have to scale down your lifestyle before you move up to a new level. For now, it might be cheaper to move into a smaller apartment or to just keep one car. Since the cost of rent and your car payments might be your biggest expenses, lowering them can make a dramatic impact on your budget. Since you’ll be busy looking at homes for sale in Long Beach, you’ll hardly notice your smaller temporary living space.
Ditch Bad Habits
Alcohol and tobacco are expensive, and you can generate more savings fast if you cut them out of your budget. If necessary, you can look for free support groups to help you cut out excessive drinking or smoking. You’ll be healthier and have more money left in your bank account every week.
Reconsider Your Vacation
Your annual vacation could be costing you thousands of dollars a year. Instead of flying to a distant location, consider planning a staycation this year. You can check out new neighborhoods and get a feel for the amenities in different communities within the area that you plan to move to, and you’ll have several thousand dollars extra to put in your home buying fund.
Increase Your Income
It might be time to ask for a raise if you’ve been going above and beyond at work. If you’re not quite there, then picking up a side job could also help you put more money into savings. Consider doing a few delivery jobs during your time off, or you might be interested in being a dog walker. Every little bit extra you make can go towards accumulating a bigger down payment.
Saving for a house prepares you for many of the responsibilities that come with being a homeowner. Being able to invest in your house from the very beginning helps you to begin earning equity faster and be ready to handle common home maintenance needs. While you may need to make a few sacrifices now, it will all be worth it when your house helps you enjoy a new level of financial security.