Saving for a Down Payment | Monday Minute

When the time comes that you are ready to buy a home, you’ll most likely need to save up for a down payment.  Typically, that down payment amount can be anywhere from 3% - 20% of the total purchase price.  The more you put down, the more loan options open up and generally better terms.  So let’s look at a handful of creative ways that you can save for a down payment.

1. Create a savings plan.  This can be as little as putting an extra $50-$100 away each month.  Which by the end of 1 year you could see an additional $1,000+ in your savings.

2. Reduce your living expenses.  This could be anything from taking on a roommate to offset your current rent or downsizing your current living situation into something more manageable.

3. Make small lifestyle changes and reduce the amount of unnecessary monthly expenses. Maybe you have one too many streaming services that you don’t use as often, or cut back on ordering out with DoorDash. Instead of going out to eat with friends, make dinner together and have a game night.  You would be surprised how much money you can save by not going out over even a single weekend.

4. Pick up a side hustle.  Instead of ordering DoorDash or InstaCart, you could sign up with them to make some extra cash.  This is America, if there’s a will, there’s a way!

5. Get a loan with down payment assistance.  Certain mortgages and borrowers qualify for down payment assistance programs.  

Check with your local lender to see if you could qualify to cover the whole down payment or even a large portion of it.Doing any of these steps will put you off to a great start to building up your down payment and get you one step closer to owning your own home!If you have any questions about the home buying process, give us a call.  We look forward to helping you!