Date Posted: June 21, 2017
1. You must prioritize
Saving for a big purchase, such as a home, requires prioritizing. Do you enjoy eating out frequently? Going on yearly vacations or buying all the latest technology or brand name clothing? Consider cutting down on these, as this can help put thousands of dollars into your down payment savings funds.
2. Pay off your credit card debts
A big credit card debt will bleed out funds from your bank account. With hundreds of dollars going toward interest and not paying down your principal balance, that's money being thrown out the window. Consider focusing on paying down your credit card debt as soon as possible. This will not only help you save money, but help ensure your credit score and report are in good standing, which is something mortgage lenders pay close attention to!
3. Get rid of one car
If you have a partner and each have a car, consider getting rid of one. By eliminating one car loan, this could save you thousands of dollars per year in loan payments. Consider the savings of car maintenance, gas & insurance and you'll be increasing the savings even further!
4. Save more from work
Getting a raise soon? Perhaps a bonus or side commission is a pay structure set up for you at work. Consider saving any additional raise, commission or bonus and watch how those funds will begin to slowly pile up.
5. Look for cheaper ways to do things
Do you go out and watch a lot of movies? Consider staying home and watching cable or even cut out cable from your household and use an alternative method like streaming through the internet.
Do you buy a lot of clothes? Try to use your wardrobe a little longer or buy selective clothing that match/coordinate with what you already have. Planning an expensive vacation? Consider using the time off to stay within the city or somewhere much closer.
Saving doesn't mean you have to put your lifestyle on pause. However, some adjustments are necessary in order to help you save your down payment much quicker. This lifestyle adjustment will help prepare you for the financial burden of owning a home.
Are you unsure of how much money you need to buy a house? Contact one of our mortgage brokers today and find out how you can get the most out of your mortgage by putting down as much money as you can toward the purchase of your new home!