Pt. 1 – Do I need a down payment?
Everyone wants to know how much you need to save for a downpayment on a home. Darren Bronski from Bank of England knows the answer! (Check out our “Ask Darren” YouTube playlist to get answers for more of your basic mortgage questions.)
Pt. 2 – What if I do need a down payment? How do I save for that?
Sometimes you do need a downpayment. There are lots of easy ways to save for one on any budget. We want to help you out, so our team has compiled a list of the best ways to save! (Of course, you’ll first want to figure out how much you can afford and need to save, so we definitely recommend meeting with a lender first.)
Shelley Paterson Homes Top 8 Down Payment Saving Tips
1. Open a new savings account that’s just for your down payment and transfer a fixed amount into a special savings account every month.
Then, pretend that money doesn’t exist. It’s as simple as that.
2. Set achievable goals.
Make a budget, know what you can maintain without losing your sanity, and go for it!
3. Sell stuff you don’t want or need anymore.
Those VHS you’ve had in your attic for 20 years might be worth more than you think!
4. Skip vacations for a year.
Focus on staycations, nature exploration and avoid airfare & hotels. (We have some staycation ideas, ask us, we love to share!)
5. Start a side hustle.
Check out this very thorough list of side hustles from Entrepreneur.com. From dog-walking, ridesharing and teaching exercise classes, you’ll definitely find something on this list that works with your interests and resources. You can also rent rooms out on Airbnb or rent out your bicycles on Spinlister.
6. Reduce expenses.
Buying generic brands at the grocery store can save you about $160 per month. Think about cutting down on eating out, buying clothes, and subscriptions like gym memberships and cable.
7. Institute a Waiting Period Before You Make a Purchase
Try waiting 48 hours before buying anything to make sure you really want it. Or find a buddy who’s saving too and commit to texting each other before every purchase. It’s all about accountability.
8. Ask for down payment contributions instead of traditional gifts.
Getting married? Holidays or birthday coming up? Ask for contributions for a down payment for a house. Some may not participate, but many friends & family will be happy to help you achieve such a great goal.
We hope these tips help you turn your dream into a home! How did you save for your down payment?