Sunday, January 29, 2012

6 steps to saving for a down payment on your home.

First time home buyers realize the benefits of home ownership - but may need the discipline to save for the closing costs and down payment.  Here are 6 ways to save for a down payment -

1. Procrastinate - yes - we have heard time and again never to procrastinate, but waiting a week to buy something you 'really want', may help eliminate the impulse buys that you do not 'really need'.

2. Eliminate excess spending - Make your coffee instead of rushing to Starbucks, drink water instead of the expensive sweetened drinks, buy in bulk instead of running to the local convenience store often, skip a restaurant meal and cook at home...all simple ideas but need discipline if you are serious about saving for your home.

3,. Track your expenses - It is important to have a budget and track it continually.  Be honest to yourself.   Have your Realtor laminate or frame a picture of your dream home - put it in your bedroom, kitchen or near the desk where you pay your bills... it will help you stay focused.

4. Payroll deduction - For those truly determined, set up an automatic withdrawal to a separate savings or money market account, so a part of your paycheck is gone automatically every month.

5. Little extras - A tax refund, an unexpected bonus or if you get paid biweekly, the 2 extra paychecks in the year can all add to the savings for the down payment on your dream home.

6. Second job - This may be difficult but if you can squeeze in a few extra hours every other week - or if you can take up a second job temporarily, until the down payment is saved, every bit helps.

I really like Suze Orman's priceless money saving tips - she believes owning a home is the best investment you can make and there is no better tax write off than a home.  However, it is wise to do it only after you have demonstrated the ability to save.  Best to have savings that can tide you over for 8 months and best to have 10-20% of the home's value for the down payment.  Good safe advice!

More real estate tips and advice in the Downingtown, Chester Springs, Exton area please contact Bela Vora

Bela VoraREALTOR®, 
Coldwell Banker Preferred - Exton
Office: 610 363 6006; Cell: (484) 947 3127
ebsite  |  Facebook  |  Blog

No comments:

Post a Comment