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.