How to Save Up For A Down Payment

One of the most daunting aspects of buying a home can be the amount of money you will need for a down payment. But don’t let the price tag scare you away from purchasing your own home. Saving money for a house can be a challenge, but with these tips your new home will be within reach sooner than you think!

Get real about your finances. Get a copy of your spending report from your bank from the previous month, typically available through your online banking site.  Categorize each transaction you made during the month and track your spending habits. From this information, you can make a monthly budget and figure out where you can cut your spending and instead, start saving.

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Talk to a loan officer. By talking to a loan officer, you can figure out what kind of loan you can qualify for and get a ballpark idea of how much money you will need for a home in the area you are looking to buy. Once you’ve saved up enough money, they can help you with the next steps of the process. Get started with Summit Funding here.

Use your tax refund. While it’s tempting to spend this money when you get it back, your tax refund makes a great starting place for a down payment on a house. This chunk of change can really make a difference when you’re trying to save up.

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Make your savings automatic. Set up an automatic transfer from your checking account to a savings account every month. This is a great way to fund your savings account without having to manually transfer the money each month. An ideal day to have this transfer occur is the day after you get paid so the amount you choose will always be available when need be.

Put your vacation on hold. As much fun as it is to go on a vacation, it can be incredibly costly. By forgoing your usual vacation for a year or two, you can save up for your home quicker. Once you’re settled into your beautiful new home, you can go on the vacation you deserve.