Making Your Down Payment Possible

You’ve dreamed of owning a home; you might have even imagined your dream home to the smallest detail. What frustrates you is that you don’t have a savings and have no idea of how you could save for a down payment.

Does a 10 to 20% down payment seem like a huge obstacle to you? You’re not alone. Many home buyers face the same problem. They don’t have the down payment, and putting away up to $20,000 seems out of their reach. But is it?  Consider the following tips to saving for a down payment.

How much are you looking at? Your first step will be to review your budget. How much of a home do you want and need? Be prepared to make concessions, but don’t throw out your wants entirely. How much you can afford will determine your down payment, and this will give you an idea of what you can afford.

Keep a budget. This may seem like a tall mountain to climb. However, it will be the key to saving for your down payment. Look at spending patterns and look at areas where you can pare down costs. Be sure to add every cost to your budget and not just food. Add cable, dry cleaning, clothing expenses, gas, groceries, rent, etc. If it comes out of your budget, you must count the cost.

Temporary downsize. Can you cut expenses by moving into a smaller house or apartment? Every penny saved can be put in your down payment savings. Then, you can build your equity instead of your landlords.

Place it all in a separate savings. Keep your down payment savings separate from other accounts like your checking. This way you won’t be tempted to dip into it because that beautiful sofa and love seat would look great in your front room.

If you need an idea of how much of a down payment you need for the house you want, contact us. We can give you an idea of how much to save for that picture-perfect house you’ve been dreaming of.