We all know that saving for your first home is exciting, yet also a little bit stressful. It’s likely the largest purchase you will ever make! It can feel like an impossible task, but it really is easier than most people think – all it takes is some mindfulness when spending and saving. Below are a few tips in order to get that down payment quickly – because let’s be honest, we’re all tired of looking for quarters in our couch cushions.
1. Understand what you can afford. Get pre-approved with a lender in your area. Don’t forget to factor in costs for repairs, property taxes, insurance, etc. you may face as a new homeowner.
2. Talk to your realtor! Real estate agents have a large network and can help you find a financing program that will help you reach your goals. There are first time home buyer incentives out there, you just have to find them.
3. Figure out what you’ll need to save. Don’t forget to factor in closing costs and prepaids, which a lender or real estate agent can help you calculate.
4. Set up a down-payment fund. Create a separate savings account for buying a house, then pay into it every month. Before you know it, you’ll have your down payment!
5. Look for creative ways to save faster. Time to forego the Sunday afternoon Target trip (we're upset about it too!). Cut back on luxuries and other costs where you can. Is there a $40 monthly gym membership that isn’t being used? Maybe this is your sign to either start going to the gym or cancel it.