Although the near future is uncertain, it is the perfect time to start saving up for your first home. You are already cutting off on eating out and spending money at events or hangout with friends.
Here I leave some other tips to consider in the near future to save up for your first home’s down payment.
- Transfer a fixed amount into a special savings account every month. If you do not have a savings count, this would be the first step, super easy to do, you would just need to set an appointment with your bank or even try doing the process online. You will have the opportunity to set a monthly automated transfer to your savings account. If you have a stable income I suggest you set it within the first week of receiving your second monthly payment, for an amount that does not affect your household expenses.
- Lower your expenses. Try cutting out on non necessary expenses, such as the monthly subscription of entertainment services or purchases
- Reduce your high interest rate debt. Pay off your credit cards on time. Start with your highest interest rate card; when you’ve paid the entire balance, close the card, and proceed to pay off the next
- Borrow from a relative. If this is a possibility, I suggest you do it with time in advance, if you must wait, just remember to include the full amount on your application.
- Borrow from your retirement plan. Look for penalty-free withdrawals for home buyers in your plan. Your Human Resources or Payroll department can help.
- Look into down payment assistance. Depending on your income, some might help with your down payment. See if you qualify with the Federal Housing Administration, the US Department of Agriculture Rural Housing Service and the Veterans Administration.