Home Buying

How to Save for a Down Payment Part 2

By February 3, 2020No Comments

How to Save for a Down Payment:

Did you know, in 2017 well over a million American’s bought their first home – people who purchased without an equity from an existing home?

  • ?Develop a budget & timeline
    • Determine how much you will need for a down payment and create a budget to calculate how much you can realistically save each month. This will help you gauge when you’ll be ready to transition from renter to homeowner.
  • Break down your savings goal into a daily amount
    • Say you need to save $30,000 for your first home. If you want to buy said home five years from now, you’ll need to save $6,000 a year, or about $16.50 a day. Knowing the daily amount will help you make smarter decisions about when or when not to order takeout, buy that $6 latte, or do a little shopping.
  • Celebrate savings milestones
    • Saving enough for a down payment can be daunting but breaking it up into smaller goals can seem more attainable. If you need to save $30,000 total, consider treating yourself to a nice meal every $5,000 saved. This will help you stay motivated throughout the process.
  • Look into state and local home-buying programs
    • Many states, counties and local governments offer programs for first-time homebuyers. Some programs offer housing discounts, while others provide down payment loans or grants.

Contact me at Holt 14 Group to find out about programs available in your area.

Sources:

https://www.aba.com/Consumers/Pages/6TipsforSavingforDownpayment.aspx

https://www.thesimpledollar.com/buying-a-house-how-to-save-for-a-down-payment/

http://theeverygirl.com/how-to-save-for-a-down-payment-on-a-house/

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