So you’re ready to get out of the rent game and buy a home for the first time. While taking the leap into homeownership can be very exciting, it can also be overwhelming. The good news is we are here to help! One of the first steps is to start saving for a down payment. While setting aside money can seem like a daunting task, these tips can help!
1. Determine what you can afford.
Before you can begin saving for a down payment, you will need to figure out how much you’ll need to save. This will require you take a look at your income and determine how much house you can afford. Once you know your purchase-price limit, you will want to discuss your plans with a trusted mortgage lender. They will be able to advise you on what options are available to you and help you further determine what your down payment should be.
2. Decide on a budget.
You have a set amount you want to spend on a house and you’ve talked with a lender about a plan. Now it’s time for the actual saving. Start by writing down all of your monthly expenses and comparing that with your income. Once you have that set, take a look at places you can cut back on your spending. These can be as simply as trading your cable for a streaming service and committing to cooking at home rather than eating out more often.
3. Make it automatic.
Even the best made plans won’t work if they’re difficult to follow. Take out the guesswork by setting up an automatic monthly or bi-monthly deposit that goes directly into a savings account. Another benefit to automatic deposits is not seeing the money first can help make it less painful when it goes into savings.
4. Save any windfalls.
While it can be tempting to use a tax refund or end-of-year bonus on a trip or the latest device you’ve been eyeing, saving 100% of any unexpected sources of income can really get you ahead in the savings game.
5. Downsize before you upsize.
Saving for a down payment while still paying rent can be extremely difficult. One way to help both your budget and your savings is to temporarily downsize while you’re building up your down payment funds. Moving into a smaller apartment or even getting a roommate for a few months may be difficult, but if you keep your eye on your end goal, it will be well worth it.
While these tips can help you save money, Educator Mortgage and Supreme Lending have others ways to help get your into your dream home!
Click here for more information on how you could save money on Closing Costs1 and Real Estate Agent Fees2 all while donating money to your favorite school program3!
1 The Educator Mortgage Program through Supreme Lending entitles the borrower to a closing cost credit equal to .20% of the funded loan amount up to the lesser of $800 or total closing cost amount. The credit applies to all loan products other than Bond Programs, which are not eligible under the Educator Mortgage Program. The lender credit will be reflected on the Closing Disclosure. No part of Lender Credit can apply to or offset down payment. Special incentive program subject to change without notice. This offer not valid with any other incentives or discounts.
2 The Educator Mortgage Program through Supreme Lending entitles the eligible home buyer and/or seller to a credit against real estate fees equal to .20% of the loan amount up to a maximum of $800. Subject to Real Estate Agent participation. Supreme Lending will make best efforts to identify a participating Real Estate Agent but does not guarantee Real Estate Agent participation. In the case of no Real Estate Agent participation the home buyer or seller will not receive the discounted Real Estate Agent fees. See eligibility requirements listed above for qualifying buyer, seller and borrower.
3 The Educator Mortgage Program through Supreme Lending also entitles the borrower to obtain a donation from Supreme Lending to their preferred school program equal to .05% of the loan amount, up to a maximum of $200. The donation is available on all loan products other than Bond Programs which are not eligible under the Educator Mortgage Program. The donation will be made directly to the school.
A participating Real Estate Agent may also make a donation to the borrower’s preferred school program equal to .05% of the loan amount, up to a maximum of $200. Subject to agent participation. Supreme Lending will make efforts to identify a participating Real Estate Agent but does not guarantee Real Estate Agent participation. In the case of no Real Estate Agent participation the home buyer or seller will not be entitled to this donation, but it will not affect the lender credit or lender donation in any way. The donation will be made directly to the school.