Saving For A Downpayment
Buying your first home is a big deal, you need to know what you need and want in a home, what neighborhood you are going to live in and much much more. On top of all of these things, you will most likely need a significant down payment to get your first home.
Down payments typically range from 3% all the way up to 20% of the purchase price of the home. You may be looking at $3,000 all the way to $100,00 it all depends on your type of loan and the home you want to buy.
First time home buyers have it tougher as well. Often times 2nd time home buyers will have equity in their current home which can easily cover their down payment on their new home. This is not true for first time home buyers though. Here are a few tips to help you get your savings rolling and get that down payment ready.
Figure Out How Much Of A Down Payment You Will Need
This is the starting point when buying your first home. Find a reputable mortgage broker to start talking with. The mortgage broker should be able to look into your credit history and help you find what type of loan you would qualify for, how big of a loan and what type of down payment you would need.
Find Your Motivation
You don’t need to go looking at homes with a Realtor yet, but you can start looking at homes online. You now know what you can afford and what your down payment will be, so find a couple homes in that range online. Print off pictures and make yourself some kind of motivational picture using these images. They will help you stay motivated and keep course on your savings.
Create A Budget And Stick To It
Now that you know what you need and have motivation for it, creating and sticking to a budget will be much easier. Track your expenses for a month, see where your money is going and eliminate the fat. Then create a strict budget and start saving. When temptations arise, consider if you want the temptation or the home more, this will keep you motivated to stay on budget.