Posted by Betsy Graziano on 7/31/2017

A new house is within reach if you find a lender who doesn't require a down payment or you to secure a mortgage. But, that's probably not the type of lender you want. A quality lender will check your credit history, background, work history and ask how much you're ready to put toward your down payment.

How you could put 20 percent or more down on a new house

It's recommended that your down payment be at least 20 percent of the total cost of your new house. Add in the fact that the average price on a house in the United States exceeds $300,000 and you're left to find a way to raise $60,000 or more.For many Americans, that's equal to an annual salary or more.

As impossible as it may seem, you can raise enough money to put down on a new house.It may call for a short term sacrifice as it regards your living arrangements. You might have to live with your parents for a year or longer.

Another sacrifice that you may have to make regards entertainment and clothes. Instead of buying live concert tickets, stream concerts live on your computer. Hand wash delicate clothes, so that you can wear the fashions until you've raised the down payment.

Get serious about saving for a down payment

Make saving a down payment for a new house a priority. More actions that you could take to save your down payment are to:

  • Cut your commuting costs - Try carpooling. You can also sign up for commuter savings programs through your employer. Heavily trafficked business areas might operate separate commuter savings programs. Your local Chamber of Commerce or the mayor's office may be a good first contact to learn more about these savings programs.
  • Hold yard sales and deposit all proceeds from the yard sales into a savings account that goes solely toward your down  payment.
  • Offer to take on extra projects at work. Put all of your overtime pay in the savings account.
  • Pay off credit cards. If you don't pay credit cards off completely, start paying them down to reduce your monthly minimums.Put this extra money toward your down payment.
  • Perform seasonal work. Types of seasonal employment includes mowing lawns, shoveling snow and preparing and taxes. If you prepare taxes make sure that you are licensed. You could also work with large, established tax firms.

Find out how much it cost to pay rent for a studio or one bedroom apartment where you live. Put this money into your savings account. Also, give some of the money to your parents as a show of appreciation.

After you save 15 percent of the down payment, meet with lenders. Ask them what type of interest rates they are willing to give you on a new house. Stick to your savings plan until you reach at least 20 percent on the average price of a home in your area.




Categories: Uncategorized  


Posted by Betsy Graziano on 5/22/2017

One of the biggest hurdles in becoming a homeowner is that of saving for a down payment. In todayís world, itís hard for anyone to save sizable amounts of money due to the extreme cost of living in most areas. With less income and higher expenses, many people have less of an opportunity to save money.


Saving Isnít Impossible


Many homebuyers are first-time homebuyers. While many simply dream of owning a home, others work to make it happen. Saving money is a goal. Once you save the money, you have made a real accomplishment. Youíll have a huge reward waiting for you once you reach your goal. How can you save effectively? Thereís a few simple steps that will allow you to start saving for a down payment on a home. Remember that no matter how slow you go, every step is one step closer to hitting your goals. 


Get A Savings Account


Preferably, the savings account that you open should be dedicated to your house expenses. Most of the time, your bank will allow you to set up automatic transfers from your checking account. See how much you can afford to save and set up these transfers. Each time you get a paycheck from work, have a certain amount put right into the savings account. Youíll be saving without even thinking about it.


Be Budget Friendly


Budgeting sounds complicated, but really, itís quite simple. First, put your monthly gross income on a spreadsheet. Then subtract things like taxes and fees that come out of your paycheck. Next, subtract all of your necessary monthly costs. These can include student loan debt, car loans, rent, and how much money you spend on food and entertainment. There's so many little things that we spend our money on everyday, you may be surprised to see how much youíre spending and what youíre spending it on. Some categories are important and others are not.       


See Where You Can Cut Costs


After you have made a concrete budget, see where you can cut some costs. If you need to cut out going to dinner and the movies, then do that. Thereís bound to be something that you can cut out of your budget thatís not a necessity that can help you to save some cash. The sacrifice will be worth it in the end!       


Indulge For Your House


Every time that you get a small bonus, a gift, or a tax refund, put it away. It can be tempting to want to go buy a brand new TV or spend your money on entertainment, but saving that money for your house fund will be a lot more rewarding. 

The bottom line is that it wonít be a huge task saving your money for a down payment once you put your mind to it. Happy saving!







Tags