Tips for Saving Up for a Home Down Payment
Having a down payment makes it much easier to get approved for a home loan. However, a down payment can range from 3 to 20-percent. How do you come up with that much money? Whether you sell unneeded items or cut expenses, there are tips you can use for saving up for a home down payment.
Determine How Much You Need
How much are you going to spend on a house? You need to determine this before you start saving up for a down payment. You also need to determine who you’re going to get a loan with. This will help you determine how much is required for the down payment. Once you know how much money you need, you can start working to save up.
Sell Unneeded Items
One of the easiest things you can do to start saving for your down payment is to sell things you no longer use. While it may not seem like it, some items you don’t need may be worth a lot of money. For example, you can sell gaming consoles, collectibles, clothing that is still in good shape, etc.
Do Odd Jobs
Odd jobs can be another great way to save for a down payment. It might be doing yard work on the weekends or creating graphics in the evenings. Do whatever you’re good at. You can even sell your services through companies like Fiverr. Take on as many odd jobs as you can so that you get the money you need quickly.
Set Up an Automatic Savings Plan
Sometimes it’s easier to save money if you don’t see it. You can have part of your paycheck deposited into your savings account. You can also set up an automatic savings plan so that money is automatically withdrawn from your savings account. This way, it feels more like a bill you have to pay. It’s also a great way to start getting used to paying more per month for housing.
Cut Unneeded Expenses
Last, but not least, look through all your expenses and cut anything that’s unnecessary. For example, do you really need to satellite or cable service? Cutting the cord can save you over $1500 a year. The more expenses you cut, the more money you’ll have to save towards a home down payment.
There are so many great ways to save money towards a home down payment. It might be setting up an automatic savings plan or doing odd jobs. Either way, you can save the money you need.