Saving a down payment can be a challenge. But think of it this way, if you can discipline yourself to regularly set aside funds until you have a down payment, you’ll probably have no trouble making your mortgage payments.
Here’s how to get started:
1. Set a goal. Research the housing market, decide what you can afford
2. Determine the required down payment and set that amount as your goal.
3. Open a savings account specifically for your down payment.
4. Keep a budget, make sure it includes monthly payments to your down payment
account, and eliminate unnecessary purchases.
5. Live below your means. Eat at home, put off expensive vacations, and take public transit.
6. Consider getting a part-time job and deposit your earnings in your down payment account.
7. Direct all unexpected revenue to your down payment, including raises, bonuses, tax refunds and inheritances.
8. Pay off debt. It’ll take extra funds at first, but over the long term, your interest savings can bump up your down payment.
9. Set your sights lower. If saving is taking too long, consider a cheaper home. Once you’re in the market and building equity, you can always move up.
Follow these guidelines and before you know it, you’ll be enjoying a home of your own.
Lots of luck!
Lester Bleich, New York State Licensed Mortgage Loan Originator 