Even if buying a home isn’t on your list of to-do’s for the next year or two, it’s definitely smart to start thinking about how much you can save towards that purchase when the time presents itself.
Coming up with a down payment for your new home doesn’t have to be intimidating – in fact, there’s a huge reward after putting in the hard work – a brand new home to call your own.
In this step-by-step checklist we will cover the basics of how you should start saving for one of the biggest purchases of your life.
In order to determine a hard number for this, it’s best to have a chat with one of our mortgage bankers. During this initial conversation you will get a better understanding of our loan products and the down payment affiliated with them. Each loan product varies from down payment to length of the loan. Being guided by one of our mortgage bankers will truly help you narrow down and make an educated decision on how much you need to save.
*Pro Tip – Getting pre-qualified first will set you up for success because you will have a better understanding of the loan you will choose and ultimately how much your loan requires you to put down.
The second item of business on this checklist is ultimately deciding when you are thinking of buying your new home! There are plenty of “life” factors that play into this, maybe it’s in your one, five- or even 10-year plan. If you’ve found a loan that doesn’t require a down payment (they do exist) then you’re already sitting pretty. If you need to start saving, building out a timeline will help immensely!
*Pro Tip – It’s always smart to start as early as you can.
The thought of saving thousands of dollars may seem overwhelming, but if you take it one step at a time, you’ll reach your goal and be on your way to becoming a homeowner in no time. There are several strategies that can help you get there even faster, including saving your tax returns, cutting back on eating out and high-end grocery shopping just to name a few.
*Pro Tip – Automating an allotted amount of money each month helps you save without having to do a thing!
As you can see, the process of saving for a down payment can start as early as you’d like! And honestly, the earlier the better when it comes to determining just how much you want to put down on your new home. This kind of preparation will spring you ahead of the game and ensure no monetary surprises when you find your dream home.