Tips to Save for a Down Payment

There are many things to consider before buying a house and the down payment can be one of the big ones. Obviously, the greater the down payment, the less you will have to continue paying monthly in a mortgage and you may even get a better rate because of it. Not everyone has the means to put down 50% in a down payment, but here are a few ways to save towards one!

Find places to cut back
-A lot of advice says to avoid buying things like coffee everyday and you’ll save a lot of money. Cutting out little bits of our lives that make us happy shouldn’t be the only way to save money. Find other places you can cut back. Maybe you don’t use Netflix and you’re still paying for it every month. Or maybe you’ve been buying produce in bulk but half of it goes bad before you can eat it. Cancel the subscription. Buy less food, it may cost more per item, but you wouldn’t be wasting most of it and you’d probably save money. If you are spending hundreds of dollars a month on eating out and getting coffee, maybe consider limiting it to a few times a week and setting aside the money you would have spent.

Sell what you don’t need
-Yard sales can be a great way to earn a few hundred dollars without spending any more money. All you need to do is find things you no longer use. Go through your closet and get rid of clothing you haven’t worn in a few years. For more expensive items, try to sell online first since you might be able to sell at a better price than during a garage sale. Check eBay for price points and list on places like OfferUp and Poshmark!

Downgrade your living space
-If you can manage to live in a smaller space like a studio or one bedroom for a period of time could save you hundreds of dollars a month depending on your current living situation. It would be inconvenient for a little while but can help you get the place of your dreams later!

Crowdfund
-Many people get gifts or loans from their family and friends. Ask for money for your birthday, Christmas, or any other holiday/event it would be appropriate to give gifts for. If people do help, make sure to thank them! A thank you card goes a long way. Or maybe have a housewarming party so everyone can see your new place!

Don’t ditch the side hustles
-Whether you take a few gigs on Fiverr or walk dogs, those few dollars and cents can really add up. Especially if you commit to solely saving the funds from these. If you have the time and energy you may even be able to get a part time job at a retailer on the weekends!

Purchasing property is a huge commitment so saving for the down payment may also require some commitment on your part. We're here to help and guide you with all parts of your home buying experience! Good luck on your journey!