You’re dreaming of that perfect house surrounded by a white picket fence. It’s time to own your own home! But with that comes a hefty financial responsibility.
Saving up for a down payment and other fees can seem daunting, yet it’s not a hopeless cause. With a few tips and tricks up your sleeve, you can save up for a house and turn your home-ownership dream into a reality.
To help you get started, let’s learn about how to save up for a house starting today.
Know How Much You Need to Save
When trying to figure out how to save up for a house, you first need to know how much you’ll need to save. That will set the goal your whole plan will work around.
Most lenders like to see a 20% down payment. But it’s a good idea to talk to your lender to find out what down payment options are available to know for sure.
Also, don’t forget to plan for other fees such as closing costs. Companies such as BiggerEquity can help you find out what to expect.
Tighten Your Budget
When the saving begins, try to throw as much free money into it as possible. A good place to look for those funds is your monthly budget.
You can cut back on your spending by eating at home more than eating out. Cancel all those unused subscriptions and gym memberships. And cut the cord on expensive cable.
You’ll soon find out that cutting back a little here and there will add up quickly.
Get a Side Hustle
If you’ve looked through your budget a million times and still can’t find enough money to save for a house, try earning more money by getting a side hustle.
This can be a part-time job you do in the evenings or on weekends. Or come up with ways to make money with a side hustle at home.
Examples of jobs you can do on your own schedule are driving for a rideshare service, freelance writing, or starting a dog walking service.
Make Pretend House Payments
Buying a house will come with a mortgage payment. A good way to prepare for this while saving up money is making pretend house payments every month.
For example, if your rent is $900 but your expected mortgage payment will be $1300, put the difference into savings.
Not only will it help you know if you can comfortably make those payments, it will also help build up your savings to buy the house.
Get Debt Under Control
Being in debt not only takes away from money you could be saving towards a house, it could also affect what kind of mortgage you get approved for.
Before buying a house, get your debt under control. Refinance high-interest student loans into a lower payment. Plus, transfer high-interest credit card debt to a lower-interest card.
Once you pay down your debt, you can use that money to save for a house. You’ll also find you’re eligible for better mortgage interest rates.
Make Your Dream a Reality by Knowing How to Save up for a House
Your dream of owning a home is easier than you think. By knowing how to save up for a house, you will set yourself up for home-ownership success.
Looking for more ideas about saving money? Stay tuned to our blog.