Tips on Saving Up for a Home Down Payment

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You have found your dream home. You check and interest rates are still low. You feel like you’re ready to be a homeowner, except for one thing – you don’t have enough money for a down payment.

Does that mean you should say goodbye to your dreams of being a homeowner? Not at all! Here are some great ways to come up with the money you need for your new home:

Pay All Your Credit Card Bills

The first thing you should do is to take care of all your debts – including your credit card bills. When you have a credit card balance, the interest charges accumulate and more of your money goes to the credit card company every single month. Cut your debt load and you get to keep the money for yourself. When you clean out all your debt, more of your income can go toward your “down payment savings”.

Look for Special Programs

There are various programs for homebuyers who are struggling to save enough for a down payment. Most of these programs are targeted for first-time homebuyers. You may have access to offices that purchase mortgages and package them as investments. There are also non-profit and community organizations that offer help to buyers raise their down payment money.

Go Get That Raise

Will a higher salary help your cause? Of course! Perhaps it’s time for you to talk to your boss about that raise. Of course, you cannot just demand this. Make sure that you base your request for an increase on all your accomplishments and not your needs.

Look for a Second Job

If your boss says you need to wait for a few months (or worse, years!) for that raise, perhaps you can look for a second job. This is a sensible option for young people who can handle the pressure of juggling two jobs.

Purge Your Closet

You probably have some old clothes that you haven’t worn for a year or two. How about those books that you have already read or will never get to reading? Are you still holding on to your collection of toys, coins, comic books, movies, or vinyl records? How about old furniture? You might want to consider some or even all of the things that you’re no longer using. You can do a garage sale or to reach a wider audience, you can sell them online!

There are many ways you can save up money for a house down payment. If you want more tips, or if you need help in your house-buying journey, you can contact Tammy Samuels! She’ll be happy to walk you through every step of buying your dream house.