FREE: DotComSecrets Book
The Underground Playbook For Growing Your Company Online

FREE: DotComSecrets Book
The Underground Playbook For Growing Your Company Online

How To Save For A Down Payment – Buy Your Home (2019 Guide)

Start a side hustle by Jan Tumbokon

Saving for a down payment for buying a home can seem like a daunting task, especially for those who have not acquired the necessary skill set or experience required to do so.

There’s so many factors that are a part of the process of not only buying a home or a piece of property, but also in the saving aspect in order to do so.

When buying a home, there are closing costs, an in depth look into your bank account.

In addition, there are also credit checks, what interest rate you qualify for, and a look at how much you have saved in your savings account.

In the following article, we will go over everything you may need to know in order to save for a down payment as a first-time home buyer.

1. Take a look at your debt to income ratio  

When getting approved for a home and saving up for a down payment, there is one particular aspect that incredibly important.

If you are applying for a loan and would like to add the down payment onto your mortgage payment, any lender will look at what your current annual take home salary is as opposed to the amount of debt you currently owe.

Paying off or lowering any substantial lines of credit will not only help to save for that down payment, but will also increase the amount you are qualified for in the loan.

2. Look Into Programs that can Help With your Down Payment

 As with financial programs that can help put yourself through college or a university, there are many programs that will aid those saving up for a down payment, especially for first-time home buyers.

There are various state agencies and non-profit organizations that can help you with this, and we guarantee it is worth the time and effort to find these.

3. Take from Your IRA

For first time home buyers, tax laws will allow you to take up to $10,000 from your retirement account.

If you are buying a home with another co-signer, and it is there first time buying a home or property as well, that would be a total of $20,000 just right there to benefit in acquiring the funds for your down payment; and this is without adding it to the overall amount of your mortgage payment.

Now there may be various other ways of acquiring the funds needed, such as selling unwanted items or finding a second job, but those can have many variables and while they may be suited for certain individuals, the before mentioned steps will be most beneficial.

How to Save for a Down Payment While Renting  

If you are currently renting a home or a property, saving for a down payment can seem like even more of a challenge. That being said, it is still not impossible and very do-able. There are a few easy to manage steps that can help you in accomplishing this.

1. Have a Clear Savings Goal in Mind

When renting and attempting to save for a down payment, it is imperative that you have a clear goal in mind for how much you will need to save for the down payment.

You will need to take into consideration how much you currently make as a household, how much you need to put down, and what your monthly expenses currently are.

This will help you to come up with anywhere you may be able to cut back each month, and how long it will take to come up with the amount needed.

Looking at your bank statements will do wonders when adding up how much you spend a month on other expenses besides rent and utilities.

There are so many media streaming services and subscriptions for websites you may not even be aware you are paying for every month. Deciding where to cut the fat out as relates to your monthly expenditures will help you to save for that down payment.

2. Hold Off on Contributing Further to Your 401K

This may seem like a bit counter intuitive when thinking about your long-term goals, but cutting back on what you are contributing to your retirement plan while saving for a down payment can really help for your short-term goal of owning a home.

Just keep in mind while the extra cash flow may be nice, you shouldn’t apply this method for too long.

3. Finding a Second Source of Income

In some instances, this can be a fast track to having the funds needed to afford that down payment. You can find plenty of additional jobs on the side that can help to save for this.

Renting out an extra room or driving on the weekends for others can be one way to do this that won’t eat into your daily routine too much.

Now I’d Like To Hear From You

Chat With Us

There you have it… that’s how to save for a down payment…

Whether your circumstances are that of which saving up for a down payment may just mean saving up monthly by cutting back, or by finding additional income.

I hope the information that is taken away from this article will help you to acquire the necessary funds needed to pay your down payment for your first home.

The methods stated above can help you in both your short term and long-term goals, and will allow you to save the money necessary in the current housing market.

Real estate is every changing, and when it is a good time to buy you should jump on the opportunity.

Saving money for the down payment, or even the closing costs associated with owning your first home may be challenging but is very do-able.

It may just mean tweaking a few on your monthly expenses. I hope this was informative, and that this article will help you on your financial journey with owning your first home or property.

Would you like to share your tips & strategies to accelerate the process of buying a house?

SiteGround
SiteGround

How To Save For A Down Payment – Buy Your Home (2019 Guide)

Start a side hustle by Jan Tumbokon

Saving for a down payment for buying a home can seem like a daunting task, especially for those who have not acquired the necessary skill set or experience required to do so.

There’s so many factors that are a part of the process of not only buying a home or a piece of property, but also in the saving aspect in order to do so.

When buying a home, there are closing costs, an in depth look into your bank account.

In addition, there are also credit checks, what interest rate you qualify for, and a look at how much you have saved in your savings account.

In the following article, we will go over everything you may need to know in order to save for a down payment as a first-time home buyer.

1. Take a look at your debt to income ratio  

When getting approved for a home and saving up for a down payment, there is one particular aspect that incredibly important.

If you are applying for a loan and would like to add the down payment onto your mortgage payment, any lender will look at what your current annual take home salary is as opposed to the amount of debt you currently owe.

Paying off or lowering any substantial lines of credit will not only help to save for that down payment, but will also increase the amount you are qualified for in the loan.

2. Look Into Programs that can Help With your Down Payment

 As with financial programs that can help put yourself through college or a university, there are many programs that will aid those saving up for a down payment, especially for first-time home buyers.

There are various state agencies and non-profit organizations that can help you with this, and we guarantee it is worth the time and effort to find these.

3. Take from Your IRA

For first time home buyers, tax laws will allow you to take up to $10,000 from your retirement account.

If you are buying a home with another co-signer, and it is there first time buying a home or property as well, that would be a total of $20,000 just right there to benefit in acquiring the funds for your down payment; and this is without adding it to the overall amount of your mortgage payment.

Now there may be various other ways of acquiring the funds needed, such as selling unwanted items or finding a second job, but those can have many variables and while they may be suited for certain individuals, the before mentioned steps will be most beneficial.

How to Save for a Down Payment While Renting  

If you are currently renting a home or a property, saving for a down payment can seem like even more of a challenge. That being said, it is still not impossible and very do-able. There are a few easy to manage steps that can help you in accomplishing this.

1. Have a Clear Savings Goal in Mind

When renting and attempting to save for a down payment, it is imperative that you have a clear goal in mind for how much you will need to save for the down payment.

You will need to take into consideration how much you currently make as a household, how much you need to put down, and what your monthly expenses currently are.

This will help you to come up with anywhere you may be able to cut back each month, and how long it will take to come up with the amount needed.

Looking at your bank statements will do wonders when adding up how much you spend a month on other expenses besides rent and utilities.

There are so many media streaming services and subscriptions for websites you may not even be aware you are paying for every month. Deciding where to cut the fat out as relates to your monthly expenditures will help you to save for that down payment.

2. Hold Off on Contributing Further to Your 401K

This may seem like a bit counter intuitive when thinking about your long-term goals, but cutting back on what you are contributing to your retirement plan while saving for a down payment can really help for your short-term goal of owning a home.

Just keep in mind while the extra cash flow may be nice, you shouldn’t apply this method for too long.

3. Finding a Second Source of Income

In some instances, this can be a fast track to having the funds needed to afford that down payment. You can find plenty of additional jobs on the side that can help to save for this.

Renting out an extra room or driving on the weekends for others can be one way to do this that won’t eat into your daily routine too much.

Now I’d Like To Hear From You

Chat With Us

There you have it… that’s how to save for a down payment…

Whether your circumstances are that of which saving up for a down payment may just mean saving up monthly by cutting back, or by finding additional income.

I hope the information that is taken away from this article will help you to acquire the necessary funds needed to pay your down payment for your first home.

The methods stated above can help you in both your short term and long-term goals, and will allow you to save the money necessary in the current housing market.

Real estate is every changing, and when it is a good time to buy you should jump on the opportunity.

Saving money for the down payment, or even the closing costs associated with owning your first home may be challenging but is very do-able.

It may just mean tweaking a few on your monthly expenses. I hope this was informative, and that this article will help you on your financial journey with owning your first home or property.

Would you like to share your tips & strategies to accelerate the process of buying a house?

SiteGround
SiteGround

FREE: DotComSecrets Book
The Underground Playbook For Growing Your Company Online

How To Save For A Down Payment – Buy Your Home (2019 Guide)

Start a side hustle by Jan Tumbokon

Saving for a down payment for buying a home can seem like a daunting task, especially for those who have not acquired the necessary skill set or experience required to do so.

There’s so many factors that are a part of the process of not only buying a home or a piece of property, but also in the saving aspect in order to do so.

When buying a home, there are closing costs, an in depth look into your bank account.

In addition, there are also credit checks, what interest rate you qualify for, and a look at how much you have saved in your savings account.

In the following article, we will go over everything you may need to know in order to save for a down payment as a first-time home buyer.

1. Take a look at your debt to income ratio  

When getting approved for a home and saving up for a down payment, there is one particular aspect that incredibly important.

If you are applying for a loan and would like to add the down payment onto your mortgage payment, any lender will look at what your current annual take home salary is as opposed to the amount of debt you currently owe.

Paying off or lowering any substantial lines of credit will not only help to save for that down payment, but will also increase the amount you are qualified for in the loan.

2. Look Into Programs that can Help With your Down Payment

 As with financial programs that can help put yourself through college or a university, there are many programs that will aid those saving up for a down payment, especially for first-time home buyers.

There are various state agencies and non-profit organizations that can help you with this, and we guarantee it is worth the time and effort to find these.

3. Take from Your IRA

For first time home buyers, tax laws will allow you to take up to $10,000 from your retirement account.

If you are buying a home with another co-signer, and it is there first time buying a home or property as well, that would be a total of $20,000 just right there to benefit in acquiring the funds for your down payment; and this is without adding it to the overall amount of your mortgage payment.

Now there may be various other ways of acquiring the funds needed, such as selling unwanted items or finding a second job, but those can have many variables and while they may be suited for certain individuals, the before mentioned steps will be most beneficial.

How to Save for a Down Payment While Renting  

If you are currently renting a home or a property, saving for a down payment can seem like even more of a challenge. That being said, it is still not impossible and very do-able. There are a few easy to manage steps that can help you in accomplishing this.

1. Have a Clear Savings Goal in Mind

When renting and attempting to save for a down payment, it is imperative that you have a clear goal in mind for how much you will need to save for the down payment.

You will need to take into consideration how much you currently make as a household, how much you need to put down, and what your monthly expenses currently are.

This will help you to come up with anywhere you may be able to cut back each month, and how long it will take to come up with the amount needed.

Looking at your bank statements will do wonders when adding up how much you spend a month on other expenses besides rent and utilities.

There are so many media streaming services and subscriptions for websites you may not even be aware you are paying for every month. Deciding where to cut the fat out as relates to your monthly expenditures will help you to save for that down payment.

2. Hold Off on Contributing Further to Your 401K

This may seem like a bit counter intuitive when thinking about your long-term goals, but cutting back on what you are contributing to your retirement plan while saving for a down payment can really help for your short-term goal of owning a home.

Just keep in mind while the extra cash flow may be nice, you shouldn’t apply this method for too long.

3. Finding a Second Source of Income

In some instances, this can be a fast track to having the funds needed to afford that down payment. You can find plenty of additional jobs on the side that can help to save for this.

Renting out an extra room or driving on the weekends for others can be one way to do this that won’t eat into your daily routine too much.

Now I’d Like To Hear From You

Chat With Us

There you have it… that’s how to save for a down payment…

Whether your circumstances are that of which saving up for a down payment may just mean saving up monthly by cutting back, or by finding additional income.

I hope the information that is taken away from this article will help you to acquire the necessary funds needed to pay your down payment for your first home.

The methods stated above can help you in both your short term and long-term goals, and will allow you to save the money necessary in the current housing market.

Real estate is every changing, and when it is a good time to buy you should jump on the opportunity.

Saving money for the down payment, or even the closing costs associated with owning your first home may be challenging but is very do-able.

It may just mean tweaking a few on your monthly expenses. I hope this was informative, and that this article will help you on your financial journey with owning your first home or property.

Would you like to share your tips & strategies to accelerate the process of buying a house?