Now that you’ve decided to move forward with purchasing your first home, the next task will be to figure out how to come up with the down payment, which is usually 20% of the home’s asking price. As a result, you will need probably a minimum of $20,000 to see your home purchase become reality. While saving up money for this can be hard, it is by no means impossible. If you are determined to get your down payment together as fast as possible, here are four tips you can implement immediately.
Buy a Lower-Priced Home
If you are really eager to own a home, you may want to consider buying a lower-priced home initially. By doing so, you won’t need as much of a down payment, which will let you save up the money a bit faster. Also, as your first home’s equity grows, you can then use it to help you get into a larger and more luxurious home.
Automate Your Savings
While you may have the best of intentions with regards to saving up for your home, it is very easy to wind up spending extra money on various things. To ensure you do put aside the money you need for your first home, automate your savings by automatically transferring a set amount each month from your checking account to a savings account. By doing so, you’ll be meeting with a real estate agent in no time.
Reduce Your Household Expenses
Though you may think you’ve already cut your household expenses as much as possible, you’ve probably overlooked a few things that could pay off in the months ahead. These can include washing clothes using only cold water, hanging up your clothes to dry rather than using the dryer, and lowering the water temperature on your water heater. Along with these suggestions, try fixing more meals at home rather than eating out so often, since this can be very expensive.
Generate Additional Income
If you have a skill you could turn into a sideline gig, you may be able to generate additional income you could use to buy your first home. Whether you choose to babysit some neighborhood kids, become an Uber driver, or maybe do odd jobs or yard work, the money earned from these jobs can put you in your first home before you know it.
By using one or all of these tips, you will soon have the pleasure of calling yourself a first-time homebuyer.