Saving money for a home purchase may sound challenging, especially if you’re on a tight budget. But with some thought and careful planning, you’ll find there are a number of ways you can put money away and take advantage of the low interest rates.
The housing market has seen some fluctuations in the past. But with a strong job market, low interest rates and voluminous inventory, you can probably find a loan program that suits your needs, even if you have bad credit. If you’re buying a home for the first time, and you don’t have the funds readily available for a down payment, you may qualify for an assistance program. Simply by giving the down payment resource your address, number of occupants in the household and approximate income amount, you’ll be given a list of eligible options. You can also do your own research via the Internet by inputting “down payment assistance.”
Sell Your Vehicle
Depending on the size of the home you wish to purchase and lender requirements, you many need to put down only a small percentage to secure your home purchase. If your savings account leaves a lot to be desired, you can sell your junk car and get money in exchange for your broken down vehicle. Car buyers looking for parts are more than willing to offer cash for a car that is in disrepair or junk condition. With the money in hand, you’ll be able to purchase the home of your dreams.
Set Up a Housing Account
Saving for a down payment on a home may seem like a long and arduous process. But by setting up a special account, you can reach your housing goals quickly. Look for a bank that pays the highest interest possible on your savings account. As the money increases, you may be tempted to use the funds for frivolous things. Put a picture of your wish home on the refrigerator or computer. Every time you feel the need to dip into your housing account, simply look at the photo.
Putting money away toward you savings account can be a painless process when you set up an automatic fund withdrawal. Whether you choose to pull the funds weekly, every other week or monthly, you shouldn’t be inclined to use the additional money.
Sock Away Your Raise
If you’ve done a job well-done at work, your employer may reward you during your employee review with a wage increase. But if you’re paying your bills in a timely manner, you could sock away your raise increase without even missing the money. Have the payment difference automatically taken out of your check each pay period and placed in your savings account.
Pledge Monetary Windfalls
Throughout the year, you may fall into various cash windfalls. These could include a work-related bonus, tax refunds, gifts and more. While you may want to blow the money on fun purchases such as a vacation, new car or electronics, place the extra funds you’ve been given into your home down payment account.
Sell Your Unwanted Possessions
You can fatten your bank account even further by selling your unwanted possessions. No matter if it’s your furnishings, jewelry, clothes, tools or collectibles, there are places where you can sell your goods for top dollar. If you’re unsure the fair market value on an item, the Internet can assist in determining the correct amount of your possessions.
Seek Assistance From Family
Shopping for the right home can take time and patience. But when you stumble upon the perfect dwelling based on location, size, comfort and price, you may want to put in an offer or risk losing the treasure. If you’re lacking enough funds for a down payment, you may be able to seek familial assistance. However, lenders rules may differ, so you need to refer to the guidelines before you accept any money from parents, grandparents, uncles or aunts.
Pulling together enough money for a down payment on a home doesn’t come easy. But starting a budget and setting up automatic payments into a home savings account can be excellent places for future buyers to begin.