Six Tips for Saving Up a Down Payment for a New Home

One of the biggest obstacles people face when they are tired of renting and ready to own their own home is having enough money for the down payment. Depending upon when you want to buy a home, there are several things you can do save the required down payment you will need to finance and purchase your new home.
Mortgage Loan

  1. Consider loan programs with a lower down payment requirement. Certain programs, like FHA loans, have a lower percentage down payment requirement, but they do require private mortgage insurance as the trade-off.
  2. Move into a smaller apartment. It might be cramped, but a smaller apartment means less money going out in rent. Put the difference you save on rent into a savings account.
  3. Set aside bonuses, raises, and other financial gains. Anytime you get a raise, bonus, tax refund, or another windfall, set it aside in a savings account for your new home.
  4. Cut out unnecessary expenses you can live without. Cancel on-demand video subscription services, and drop TV, internet, and phone plans to the lowest ones that still meet your needs.
  5. Cook and prepare meals at home instead of dining out. If you eat out a lot, cut this down to once a week or less.
  6. Use grocery coupons and shop sales ads. You would be surprised how much you can save on food by buying only what is on sale and using coupons.

By using these tips and remaining focused on your ultimate goal to purchase a new home, you will have your down payment saved up before you know it. Call Elite Financial at (800) 908-LEND (800-908-5363) or 805-494-9930 for more information about mortgage programs and down payment requirements today!