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Tips on saving for a down payment

2/11/2017
If you’re have been dreaming of buying your first home, you probably have an idea of what kind of house you want and what area you want to live in. You’ve probably also started thinking about how much you need to pay for a house and how much you need to save for a down payment. Here are some helpful tips that can help you save for a down payment, allowing yourself to launch yourself into the exciting process of home buying.
  1. Determine how much you need to save. The biggest step in buying a home is getting your financial plan in place so you know what you can afford and how much you’ll need to finance the home of your dreams. Contact a local lender that can help walk you through the steps of how much money you’ll need to save and what kind of payment you can handle each month. Down payments usually range from 3% to 20% of the total home price, which often depends on the lender and what type of loan you end up getting.
  2.  Start saving. Before you start saving for a down payment, look closely at your spending habits and determine which categories you can cut back your spending in. Do you eat out regularly, travel consistently, or do you treat yourself to a latte every day? Cutting back on even the smallest things will put more money in your pocket and you’ll soon see your savings account starting to grow.
  3.  Make extra money. If your budget is tight, consider figuring out some ways to earn a little bit extra income. If you’re talented in a certain area or have a special job skill that could come in useful for students, consider tutoring a couple of days or nights a week. Check Craigslist or other local job sites for part time work opportunities, weekend work, or freelance gigs. No matter what your skills or expertise, there are likely some jobs out there that don’t require a lot of extra time but could allow you to earn extra money to help you reach your goal faster.
  4. Be patient. Saving for a down payment takes time. Set small goals along the way, keep your savings growing, then when you meet the goal, throw yourself a mini-celebration. For example, if you want to save $10,000 total, plan on celebrating when you make the halfway mark by treating yourself to a weekend away somewhere or a fancy dinner out. Celebrating as you go keeps you motivated to keep on going!
Even though the process may take a while, it’s well worth it! You’ll not only be on the road toward financial stability, but home ownership as well! The process is well worth it and will put you on the road toward financial stability and in the end, you’ll be able to buy and live in the home of your dreams! Alder Fine Homes is busy building dream homes in the new Timber Crest neighborhood. Contact us today for info on how one of these homes might be right for you and your family!