How to Save for a House
If buying a home is in your future, having the down payment is most likely one of the main hurdles you would need to figure out. It can be a challenge to get the funds to put down on a house, but there are some strategies that can help grow your savings more quickly. You might even need less money than you think.
Here are 10 beneficial strategies and options to save money to purchase a new home.
1. Set a goal - Having a timeline on when you want to purchase a home helps to determine how much you will need saved up. This will help to keep you accountable.
2. Review your finances - Come up with a budget to determine how much of a home you can afford and how long it will take you to save money.
3. Set up a special savings account - Have an automatic transfer set up to the account. Put aside a set amount from each paycheck into your savings account. Put any yearly bonus checks into the savings account.
4. Cut expenses – Take a look at your everyday expenses and find ways to cut back on spending money every month on entertainment, dining out, or monthly subscriptions. Switch to a cheaper insurance plan. Trim your clothing budget.
5. Increase your income – Take on a second job or volunteer for extra hours when available. Ask for a raise and put the extra money in a savings account.
6. Check your credit – Having a good credit score will help you get a better interest rate and more savings over time.
7. Refinance loans - Check into refinancing high interest loans to get a lower interest rate and monthly payment. Getting a credit card with a 0% interest for a certain time can allow you to transfer higher interest credit card debt. Both options can help save money monthly to put more aside for a house.
8. Move in with family or get a roommate to help with rent.
9. Ask for gift money from family if you can.
10. Look into down payment assistance programs to take advantage of.
Mortgage Services Loan Officer
Sr. Manager- Vendor Management/Solutions
This blog is not on behalf of Peninsula Federal Credit Union.
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