Preparing to buy a new home requires a good deal of focus on your finances. The down payment is a major part of buying your first home and can drastically affect your mortgage payments, the time it takes you to pay off your mortgage, and generally make owning a home a reality.
Saving for a down payment is a different ballgame altogether, but we’ve put together a list of unique ways to save for a down payment.
Make it Automatic
With the advent and widespread use of online banking, it isn’t hard to make your finances automatic, simple, and hands-free. Hopefully, if you’re considering buying a home you’ve already got some savings set aside. If not, no worries!
With your family, establish what amount of money you can set aside each month and make that amount an automatic transfer into a savings account that you don’t touch. It’s better if you can’t see the savings account if you’re starting early, but sometimes that’s not possible. No matter the amount, make it automatic and see what happens in the months to come!
Stop Silly Spending
We’ve made mention of this tactic as a way to get out of debt and pay down credit cards or other debt obligations, but this method works just as well when you’re trying to put back some cash for a down payment. Making small changes can have big consequences in your finances.
If you spend money weekly on something that can be tempered such as dining out, fast food, or buying things for yourself or your family, then consider putting that spending on hiatus for a season while you funnel those funds towards your down payment savings. It takes some self-control, but if you can do it, you’ll be rewarded years down the road.
Lower Your Bills
If you currently don’t own a home, then you may not be thinking about lowering your bills. Most of us get settled into certain payments that we make every month: electricity, water, garbage disposal, home, and auto insurance, you name it!
Because we’re comfortable with the payments we’re making, we often overlook the fact that rates and policies can easily be negotiated or adjusted and our plans can be changed. If you’re renting now and will be buying soon, changing your utility rates will work heavily in your favor.
Take the difference from your old payment to your new one and throw it into your down payment savings!
Get a Side Hustle
Side jobs can make a huge difference for a family looking to just nudge their income up a little bit, and you can make a big dent in your down payment savings as well as your future mortgage payment by having one.
With so many opportunities available online, you can find something that fits your unique skill set and expertise niche without compromising or sacrificing too much of your valuable family and leisure time. Even a few hours a week can yield a few hundred dollars per month you can put back into your down payment savings.
Finding the right amount to save for a down payment as well as working to find the right payment options for your mortgage can be a bit of a challenge. There are plenty of special programs you can take advantage of and Tidewater Mortgage Services, Inc. can help you find the right one for you. Fill out our simple online application and get pre-qualified for a mortgage in as little as 24 hours!