How to Save For a Down Payment

Whether you are buying your first home, or looking to upgrade from your existing home, saving up for your down payment can be a daunting task. But it doesn’t have to be- utilize these tips below to be on the path to your new home sooner rather than later!

·         Establish How Much You Will Need: It is hard to start saving and stick to it if you do not have a plan outlined. Many organizations require 20% down, but some organizations offer lower requirements or down payment assistance programs. Talking to your lender is a great place to start.

·         Reduce High Interest Rate Debt: If you have credit cards or student loans that are at a high interest rate, it may be beneficial to focus on paying those off prior to saving for your down payment.

·         Automate It: Once you establish your budget and decide how much you can allocate to savings, make it automatic! When the money sweeps automatically on payday it is out of sight out of mind.

·         Make It Fun: Saving for your down payment can be a long process, but it won’t be as discouraging if you find ways to make it fun. Try using various savings plans – for example, every time you receive a $5 bill back in your change from a purchase it has to go into savings, or grow your weekly deposits starting with $1 the first week stretching to $52 the last week of the year.

·         Visualize: Make your dream home the background image on your phone, at your desk at work, in your car, everywhere! This will help keep you focused on saving for that home.

While the thought of saving for years for a down payment may seem disheartening, the larger down payment you save before your purchase will make your monthly payments that much more affordable!