Homeownership is a goal of many individuals. However, some think the task of buying a home is too great for them to accomplish because of lack of funds. The biggest part of funding for a home that scares off many is being able to save for the initial down payment. But the truth is — saving for a down payment is not as impossible as you may think. If you have good employment and desire to buy a home, chances are you possess the resources necessary to save for the down payment of your first home. Through careful strategic planning and diligent efforts in following the plan you can have the home you desire.
Save Your Tax Return
Many people are accustomed to running to the mall when tax season comes. They feel that it is a great time to do a little “splurging” and buy a few things for themselves. Instead, place your tax return in an account that is geared towards the down payment of your home. Over a couple years, this can become a strong contribution to your down payment.
Look to Earn Extra Income
There are part time jobs that you can do before/after work or on weekends that can give you extra earnings to put solely towards the down payment of your home. Jobs like newspaper delivery, stocking shelves part time in a grocery store, weekend babysitting, or food delivery at night can bring anywhere from $500-$800 extra per month.
Cut Down on Luxuries
One of the keys to saving money is recognizing the difference between luxuries and necessities. Forfeit some luxuries for a couple of years to save towards the down payment of your home. Buy a normal cell phone instead of a smart phone — and pay for a basic service plan. Turn off premium channels on your cable bill. Walk more instead of driving everywhere. If you have to travel over 2 miles, ride your bike and save on gas. These small things can add up to hundreds of dollars per month in savings towards your down payment.
Find Inexpensive Ways of Fun
Fun does not always have to cost a bunch of money. Grab your sports gear and head to the park with friends. Or better yet, spend $4 on a deck of cards and have a game night at your apartment. Quite often these activities end up being more fun than spending hundreds of dollars on theater tickets.
Eat What’s On Sale
Quite often we tend to shop for food based on cravings. For a couple of years, try shopping for food in accordance to what is on sale. And if there is a particular food you like that is on sale, stock up on the sale item for future weeks. Utilize your freezer and food pantry as storage places for saving you money.
Seek a Fist Time Buyers Loan
There are first time buyer loans that will allow you to put down a 3% down payment and also offer other perks to assist you with your first ever home purchase. Research programs in your state that has these types of benefits. If you’d like more information about first time home buyer loans, consult with one of our mortgage advisers.
These are just a few successful ways you can save the money for your down payment and become the home owner you desire.