How to Save Money For a Down Payment

The home buying process begins long before shopping for a home. It can start years before, when you and your family decide that buying a home is going to be a long-term goal. And that means saving for a down payment.

Putting money away for a down payment requires discipline and a plan. But don’t worry; it’s not an impossible undertaking. Here are some tips to make it easier:

  1. Set a goal. Use a mortgage calculator to figure out what kind of budget you can set for your purchase.
  2. Make saving part of your monthly budget. You set money aside for rent, bills, student loan payments, etc. Get into the habit of setting aside money every month for the down payment.
  3. Create a timeline. When do you want to actually begin looking for a home? Set a goal and stick to it.
  4. Remember that unexpected expenses come up. No one can stick to a saving plan 100%. Who knows what the future holds? Don’t beat yourself up; just add some flexibility to your plan so that a month or two of not saving doesn’t derail you.
  5. Save the extra money. Put your tax refund, holiday bonuses, and any money that you find on the ground or between the couch cushions into your down payment account. Every little bit helps.

Saving for a down payment and buying a home is a big deal, but you don’t have to go it alone. If you have any questions about saving money, types of mortgages, or general questions about financing a home, give me a call or shoot me an email.


Source: CNN Money