Looking to buy a home this year but finding your savings to be lacking in funds? Whether you’re looking to put down three percent or twenty percent towards your home, here are 3 great ways to save money for a down payment.
1.) Build an Account: Build your down payment savings stash by setting up a designated account that pays the most interest possible. It’s important to set up an account solely for your down payment so as not to be tempted to take money out for other uses. It’s also recommended that you establish an automatic draw that automatically funnels money monthly, bi-monthly or weekly from your checking account.
2.) Assistance programs: There are literally thousands of down-payment-assistance programs that exist to help buyers come up with the costs associated with home buying. According to RealtyTrac, there are over 2,000 available programs across the country. Sites likeDown Payment Resource are designed to help connect people with hard to find financial resources and helps deliver a list of programs for which you may be eligible for and contact information for participating lenders in your area.
3.) Cut costs: Can you squeeze more savings out of your cellphone plan? What about cutting out Starbucks, and getting a new estimate on your car insurance. Anytime you can reduce the costs of your monthly expenses, take that little extra that you’re saving and bank it into your savings account. Saving $25 a month on a lower bill may not seem like much but after a year that’s an extra $300 more that is available towards your down-payment goals. Got a raise or a bonus coming up? Pretend like it never happened and have the difference between your old and new paychecks automatically transferred into your down-payment savings in a virtually painless way.
If you’d like more information about saving money on a down payment, learning more about qualifying for a mortgage, or are interested inbuying a home in Goodyear, AZ please contact Lisa Bray today.
Join me on Facebook!