How to save for a down payment
The age of those buying a new home has gone down in the past several years, due to the fact that renting has gone up to almost or more than mortgages in many states. For this reason, many twenty-something’s find themselves making the choice to purchase their first home. If you find yourself in this same scenario in looking for New Braunfels Custom Home Builders
or know someone who is, Weston Dean Custom Homes has some great tips for how to save up for a down payment.
Saving for a down payment on a new home may seem like a daunting or impossible task, but with the proper planning and smart decisions, you can have a down payment saved sooner than you might think.
First, the minimum down payment for a new home will depend on your financing and might be lower than you anticipate. The best first step to take is to meet with a loan officer to determine the down payment amount you will need in order to purchase your first home. Some down payments can be very doable, depending on the factors of your loan. Here are the best ways to plan out and save for that down payment amount.
The very first step you should take when saving for a loan is to work with a loan officer to clean up and credit issues you might have. Your credit will determine your purchasing power, so you want it to be in the best shape it possibly can before you start looking at homes and shopping for a home loan.
Once your credit is in place or is going in the right direction, then establish what your new home price will be and what you can realistically afford. Once you know your purchase price, you can calculate the down payment number you will need to save towards.
Next, set a goal and a deadline to stay on track with monthly savings to keep you motivated. Then, start saving! It is easiest to create a separate savings account for your down payment. You will be less temped to spend if the money is s not among the accounts you access regularly.
It is important tip is to save automatically. This means, with each paycheck the first thing you do is put the money you have dedicated towards savings directly into that savings account you created. If you don’t see the money, you wont miss it.
Lastly and most importantly if money is tight, see how you can lower your monthly expenses. By cutting back or eliminating monthly expenses you don’t need, you can free up that money for savings.
Weston Dean Homes is a San Antonio area custom home builder. For more information call (210) 408-9107.