5
Ways to Save Up for a Down Payment
Since
the typical down payment for a home purchase is 20% of the
agreed upon price, setting that much cash aside can take
some time and careful planning. For example, if you were
buying a $200,000 home, the amount to put down would be
$40,000. Here are
5 tips to get your down payment piggy bank started!
1. Establish a monthly budget - Without setting some
spending guidelines; securing a lump sum of cash will be
difficult. Go over all of your monthly expenses and review
how much cash is coming in, and which bills you are absolutely
responsible for. It may be helpful to meet with a financial
planner to devise a budget strategy.
2. Pay off your credit cards - Do not let credit
card debt be an obstacle. Strive to pay off any existing
balances, and then put the plastic away for good! Doing
this should also improve your credit score which will be
a plus when you apply for a mortgage.
3. What can you do without? -This is really the meat
of the issue. Taking a look at all of your non-essential
expenses, doing away with them and putting the extra cash
aside is the best way to make headway on your goal of home
ownership. If you are serious about saving up for a home
you may want to:
-Cancel your gym membership, warehouse club card, magazine
subscriptions, and cable.
-If you are making car payments, consider selling your car
and using mass transit. In many cities, it's a definite
possibility.
-Use the library to check out books, cd's, and dvd's, rather
than buying them.
-Stop paying retail prices for clothing and look to consignment
and second hand stores for alternatives to over priced,
trendy apparel.
-To save on your grocery bill, use coupons and sign up for
free, online weekly sales alerts. Also, try to purchase
produce from local farmer's markets, where the items are
local, fresher, and usually a bargain.
4. Dine at home - The web site 24/7 Wall St. reported
that in 2009 the average US household spent $2,619 on meals
away from home. It is a habit that many of us depend on,
however, the benefits of dining at home far outweigh the
convenience of most grab and go grub. In addition to saving
hundreds of dollars each month, dining at home is usually
healthier and a great way to bring the family together!
5. Who needs a vacation? - When you are trying to
save up for a home purchase, post phoning your annual ski
trip or week at the beach house can also save you a few
thousand dollars. Be creative, consider a staycation, and
know that the sacrifice is worth it in the long run.
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Choosing
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Items
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5
Ways to Save for a Mortgage Downpayment
Choosing
a Neighborhood
