Since you'll want to have approximately 20% of the purchase price of your home for a down payment, it can seem nearly impossible to come up with the funds. Fortunately, there are a few ways that you can save a little over time and not have to borrow from the Bank of Mom and Dad. If you're looking to invest in a home in the short-term and are looking for solutions to save up, here are some tips on how to get to your down payment amount more quickly.
Create A Budget
Most people don't like the idea of a budget, but few things are going to help you reach your financial goals like having one. Instead of sticking your head in the sand, add the numbers up and see approximately how much you're spending each month. It may not seem like it, but getting a sense of what your monthly costs are can help you get a good idea of your overall financial picture and how much you really should be spending.
Get An Extra Job
Whether you want to do a freelance job on the side or get some part-time work, there are few things that are going to help you achieve your goal of home ownership like a little extra money. It may seem like a drag to go to a part-time job from your full-time gig, but it can be well worth it when you begin to see the coins stack up. It's just important that your part-time pays enough that it's going to make up for the extra time you'll be giving up.
Trim The Excess Costs
If you've got some extra money coming in and you've created a budget, you're certainly on the right road for saving up. However, a lot of life's little luxuries can take a lot away from your savings rate. While you'll want to keep a little aside for meals out or entertainment, if you have sizeable costs like a car, eating out or cable, you may want to dial these back to save for your greater goal.
It can take some time to save up for a down payment, but you may be able to avoid borrowing money if you bring in more each month and get rid of excess costs. If you're currently getting prepared to buy, you may want to contact one of our mortgage professionals for more information.