Tips For Saving Up For a Down Payment

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Follow these tips to help you put aside some funds for your next home’s down payment

Cervone Deegan + Associates knows that saving for a down payment to buy a home can seem like an extremely challenging task these days. With your regular monthly expenses, lifestyle costs and any debts you may currently have it can feel like there is not enough money coming in to put aside. However, there are some great programs out there and some crafty ways to save. Here is a good look at some ways you can prepare.

Establish a time goal

The first thing to do is to make a timeline of when you want to realistically buy a home. Then you will want to calculate your budget and figure out how much you will need to save each month to reach this goal. Your timeline may shift depending on if you can save in the desired realistic time.

Eliminate some expenses

For a short time you may have to do things like skip the coffees out, that mid week restaurant visit and a subscription or two that you may have. Just make note that it’s not forever, so just remember that! Also, keep tabs on your grocery bills and consider some cheaper options like Trader Joe’s or Aldi which are popping up in more places.

Designate a savings account

One of the best ways to keep track of your savings is to set it aside from your regular savings. There are some savings accounts where you can even schedule regular transfers into them so you know you are staying on track.

Retirement contributions

You might even want to debate lowering or temporarily pausing your retirement contributions while you save. Check with your financial advisors for what may be best here.

Temporary downsizing

Are you in a large apartment all alone? It might be wise to consider getting a roommate or moving in with a friend for a little while you bank the extra savings.

Side job

If you have extra free time during your week you may to get a temporary side job. Perhaps it is a shift or two at a restaurant or shop in the eves but you can allocate all of this extra income to your down payment.

Sell unwanted items

Audit all of your belongings. Were you planning on ditching that dining set or thinning out your closet? Try selling some things on the various apps that make it so easy these days.

Cool it on big ticket purchases

Now is not the time to buy a new car or buy new living room furniture. Aside from keeping this cash on hand for your down payment, big purchases can negatively affect your credit score which is very important to preserve before buying a home.

Research down payment assistance options

Your local lender may be a good place to start for this. There are nationwide programs too that can help maximize your down payment. Some are in the form of grants where you don’t even have to repay them.

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