Saving for a Down Payment on a Home

Many consider this a great time to buy a home. Interest rates are still at reasonable rates and home prices are still low.

Work Out a Budget

Begin by looking realistically at your budget. How much are you spending on household expenses, clothing, entertainment, and dining out? With these facts at hand, write out another budget – one that allows for saving for your down payment.

Unnecessary Items

Are there unnecessary monthly charges that can be eliminated or reduced? For example, can you choose a smaller package on your cable bill? Rather than going out to dinner multiple times a week, you can choose to cook at home. You can switch to a cell phone plan that will save you money.

Instead of the family going out to the movies, rent them. Shop with lists, and stick to those lists. Impulse shopping will cost you more than you might realize. If you’re planning on a big purchase, give it some time. In this time, you can do some comparison shopping. And decide if you really need the item.

Raise Cash 

If you plan to buy a home as soon as possible, put your credit cards away and only use them for emergencies. Coupons are a great way to save money. Stay away from or cut down on your trips to the mall.

You can hold a garage sale and sell unused items. You’d be surprised at how much money can be earned by holding a garage sale.

Start a Savings

Now that you’ve worked out a budget and eliminated unnecessary expenses, you can start your New Home Savings. This will minimize your temptation to spend cash that can be used for your down payment.

When you’re ready to look at homes, please contact me. We can discuss what you will realistically need to purchase a home.