Finding your dream home can be a process, but when you see it, somehow you know that’s the home for you. Having your home downpayment ready helps ensure that when you find *the one*, you can make it yours.
Here are 5 tips to help you successfully save for your home downpayment…
Know your home downpayment number
To successfully save for your home downpayment, you need to know your monetary goal. Meet with a mortgage lender and determine the loan amount, and the amount needed for a downpayment. Keep in mind that you don’t have to borrow the full amount for which you qualify. Instead, look at your budget and come up with a monthly payment amount that works for your finances. Some sources recommend keeping your monthly mortgage payment at 28%, or less, of your monthly income.
Eat out less
Take your lunch to work. Skip the morning drive-through, and eat breakfast at home. Replace dining out with family game night and a home-made pizza. Finding ways to reduce or eliminate eating out can save you a lot of money.
Rethink your commute
Consider joining a car pool, or taking public transportation to work. Not only would you be doing something to help the planet, but you’d save gas money, too.
Resist new debt
While you’re in saving mode, try not to take on new debt. For example, if you pay off your car, keep it for awhile instead of opting for a new vehicle right away. Applying for new credit can negatively impact your credit score, so avoiding new debt can keep your score stable, as well.
Set your timeframe
Once you know the amount you need to save for your home downpayment, and how you plan to save it, you need a timeline. Decide how long it will realistically take for you to save the amount of money you need. Write it down and check your progress on a weekly basis. Regularly checking in helps keep you on track, and focused on the goal.
Let’s talk about it
Start where you are and be consistent. If you do this, you can make your dream home downpayment a reality in the very near future. If you’d like to talk about your home buying options, let’s connect!