We have worked hard to make those in our community aware that there are options for 100% financing (meaning a down payment is not required) available. However, you may choose to include a down payment to reduce your mortgage amount, or you may qualify for a loan which requires a down payment, or you may simply want to take care of the closing costs instead of rolling them into your loan. No matter the reasoning, saving up money when buying a home can feel overwhelming at first but there’s no reason to become overwhelmed let’s look at some easy ways to save.
One of the first things to do is divide that big number into something more manageable. For example, if you have a goal of saving $12,000 for your down payment and closing costs and want to move next year, that would mean that you are looking to save $1,000 a month. By breaking down your savings into one-month increments, it will help you to examine your expenses and find ways to save.
Are there expenses you could cut? If you are currently paying for cable, you may be able to save around $100.00 a month by doing without it. Perhaps you could pack your lunch instead of buying it out; if you compare the cost of buying lunch to a loaf of bread and deli meat, you will see significant savings. Do you buy a coffee every morning before work? Cut that cost! Another option is to get rid of memberships, such as a gym membership; you may be able to do without it for a year as you save up for the house and find workouts you can do at home. But as you are cutting these costs, it doesn’t do you good to spend it elsewhere. Sit down and figure out how much you are spending on the items you intend to cut, then once a month pull that amount over into your savings account! Sometimes it helps to save the money better when you don’t see it in your checking account.
Remember the goal and don’t give up! If you stick to the savings plan, six months in you will have $6,000 saved. $6,000 is enough to take a nice vacation but resist this temptation reminding yourself why you are saving and why it is important to you. For more information on the home buying process, visit our first-time home buyer page.