Tips to Save for A House / Down Payment
How Much to Save
When you’re looking to buy a home, you should have some cash on hand – but how much? The good news is that most lenders don’t require a 20% down payment anymore – in some cases, you might be able to get a conventional loan with as little as 3% down.
What You Can Afford
When you’re looking to buy a home, you should have some cash on hand – but how much? The good news is that most lenders don’t require a 20% down payment anymore – in some cases, you might be able to get a conventional loan with as little as 3% down.
How to Save Money
Build a budget.
Write down how much money comes in each month, and how much goes out for things like rent, utilities, groceries, extras, and more. Having all of this in front of you allows you to find places where you can cut back, and how much you want to put away each month.
Downsize.
When you downsize, you only spend money on what you need. You might choose to move into a smaller apartment, sell an extra vehicle, or move to a more affordable area.
Cut out/cut back on a bad habit.
A few habits to consider cutting down on include impulse buying, getting takeout, or picking up a coffee on the way to work.
Ask for a raise.
If the timing is right, asking for a raise while you’re in the process of saving up for something is always helpful.
Check out the job market.
If you can’t get a raise, check out the market to see what might pay you better.
Skip vacation this year.
If you’re saving for a down payment, it might be smarter to put that vacation money in your savings account.
Pick up a side hustle.
There’s nothing wrong with freelance work or working for a ride share company while you save money.
