If you are planning on buying a home, you need to save up for your down payment and to cover closing costs. But saving can be tough—and if you want to save up enough money to purchase a home, you need a plan.
But what, exactly, should that plan entail?
A recent article from realtor.com outlined key savings strategies you can use to save enough money to successfully buy a home, including:
Set up a home savings account—and set up automatic payments. If you are saving for a home, you will want to set up a savings account specifically for your house savings. Then schedule regular automatic transfers (for example, once or twice per month) from your checking account to your home savings account, just like you would a bill. Automating your home savings will ensure that you are putting money away each month—and will help you reach your savings goal faster.
Turn spare change into savings. When it comes to saving for a home, you are probably thinking in dollars—but cents can also help you reach your goals. There are a variety of apps that will round your purchases up to the nearest dollar—then deposit that spare change into a savings account. While 25 cents here or 70 cents there might not seem like much, those cents can quickly add up—and when it comes to financing a home purchase, every cent counts.
Research down payment assistance programs. The down payment is generally the largest expense associated with buying a home—but, depending on your financial situation, you may not need to save up for your entire down payment yourself. There are a variety of down payment assistance programs available to certain types of buyers (for example, buyers at a certain income level, or civil servants looking to buy a home)—so do your research and see if there are any programs you qualify for today.
In addition to key savings strategies you will want to discuss your homeownership goals with an experience real estate professional and mortgage professional. For additional insights contact us. We would be honored to assist you!
