With a little creativity saving for a home can be made easier
Cervone Deegan + Associates knows that a home purchase these days will require a fair amount of money down as you secure your deal and home loan. With home prices the way they are it means that you will be needing to put even more down. One can certainly put less than 20% down but that can leave your offer looking less strong in a competitive market. So unless you are pulling a good amount of equity out of a home that you are selling, then here are some helpful strategies to save up to buy your next home.
Pay Your House Fund First
A smart strategy for keeping your house funds from getting clouded by other savings is to put it separate in its own account. Get in the habit of paying it first just as if it’s one of your bills every month. Automatic and recurring transfers are also a great option if offered by your bank.
Fund Your Down Payment
Some people are fortunate to have friends and family that will want to contribute to your house fund. There are some options out there like HomeFundit or Feather The Nest which allow you to approach your goal much like GoFundMe where you can set target amounts and deadlines too.
Save Spare Change
Some apps or banks will help you save by rounding up your payments to the nearest dollar and will save the extra change into a designated account that you have set for a home. Over time these things can all really add up!
Local Assistance Programs
Some local governments offer down payment assistance programs and grants that you may qualify for. Most often these are income-qualifying but there are some for teachers, firefighters, and the like that you can look into.
Audit Your Taxes
If you are someone that gets a sizable tax return each year then you may consider lowering your exemptions to regularly take home more cash where you can put it aside and let the savings accrue faster.
Check Retirement Savings
This option should really be like a last ditch effort for most. A few things should be strongly considered here like your age, whether or not your IRA or 401k allows a one time withdrawal for down payment with no penalty and the like as replacing this money will take time of course. Your financial planner is going to be the best person to advise on this option for you.