Saving for a down payment can be difficult, no matter what point you’re at in life. If buying a home is something that you see in your future, there is no better time to start preparing for that process than now. No matter if you’re looking to buy soon or a few years from now, these tips will put you on the right track.
Determine How Much to Save
This first step is huge to home buyers everywhere. Determine how much you can spend on a home and how much of a down payment you’ll be saving for. Your loan officer can help you determine what is needed for a down payment. Although there are advantages to putting 20% of your purchase price as a down payment, this is not required.
Determine When You Want to Buy
By having an idea on when you’d like to purchase a home, you will be able to set the amount of money you need to save per year. The shorter time frame, the more you must save annually.
Where to Keep Your Money
By saving your money in a savings account or certificate of deposit, you are guaranteeing that you can access the amount you’ve set aside with ease. Utilizing stocks or investments may result in a higher return, however, there is the risk of market fluctuations.
Similarly, consider setting your savings to be automated. If the amount you want to take per check is removed and put into a separate account without any thought, there is less chance of overspending or using the money for something else.
Make Use of Your “Bonus” Money
We all know that most of our money is accounted for before we ever see it. On the other hand, sometimes we have a large amount of cash coming back that can help move that savings along or […]