With the prices of rent skyrocketing, it makes a lot more sense to buy a home. Saving up for a down payment for your house may be hard, but it can be done. Remember, the higher your home ownership deposit is, the lower your loan and monthly payment will be. Here are some ways to make sure you have saved enough money for a home deposit when you secure your home mortgage:
Prioritize and Budget
Figure out the specs of the dream house you want to purchase. Look at No1 Property Guide site to give you an idea. Having a figure to work with is the first step in prioritizing your saving and working with a budget. You must prioritize saving for funding your new home, and you can do this by reworking the family budget. It is time to stop eating out too often and funding those extravagant vacations. Save, save, and save some more.
Look for Cheaper Alternatives
Smart people save a lot of money by finding cheaper ways to the things they like. There is no need to diminish your fun and enjoyment because there are many ways to do things for a cheaper price. For instance, go to the library to borrow books. Instead of paying for them, you get to enjoy them for free. Ditch the designer coffee and brew your own cup of java at home. Feel like going on a movie date? Well, watch from your own home TV via Netflix or cable. Microwave some popcorn, sit on the couch with your loved ones, and you’re good to go. If you have two cars, then may it’s time to consider giving up one. Carpooling and public transport both have their respective benefits. Think of your food budget and use those coupons to save. When you are desperate to save money, every little bit counts.
Pay Off High Interest Debt
It is high time to take a look at all your high interest credit card debt. Take an inventory of what you owe and consider consolidating all of them into one account. Check out the many credit card options offered that have zero APR to very low interest rates. This way, you don’t have to monitor many cards and risk forgetting to pay something. That way, you don’t incur any more penalties, you can slowly but surely pay off your monthly bills without being killed by the sky high interest rates.
Get a Side Hustle
What better way to earn extra money by finding another job to augment your income. With the advent of technology, finding a side gig on top of you 9 to 5 job is now totally doable, and you can even work from home while earning money at the same time. Examples are medical transcription, content writing, video graphics, virtual assistant, and the like. If you have interesting hobbies like baking or making jewelry, then you can leverage your talent to earn more. On top of that, there are other services you can provide like baby sitting, mowing the lawn, cleaning cars, tutoring kids, and more. Opportunities are everywhere and money can be made just as long as you are willing to put in the time and effort.
Save All Your Bonuses
If you get a financial windfall, then stop yourself from going on a shopping spree. Now is the time to curb your splurges because owning your own house is a more important investment towards the betterment of your future. Save all the bonuses that you receive and make sure you do not dip your fingers into that account. Self-discipline is key to make sure that you successfully save up for that home down payment.
Ask Help from Family
There is no shame in asking for help from family. Who else can we rely on in our moment of need but our own flesh and blood? Your parents may be willing to offer some assistance toward your home deposit. You will never know until you ask. Just make sure that you pay for the money you borrow on time because you don’t want your relationships to turn sour if you default on the payment. Relationships should not have to turn sour because of money matters.
Look into Down Payment Assistance
Some organizations may be able to help with your home deposit. Check out your local housing authorities to see if they have programs for first time home buyers. In Australia, they have the HPA or Home Purchase Assistance program, so do read up on that to see if you qualify.
Consider Hiring a Mortgage Broker
A home is a huge investment, and it doesn’t hurt to get some assistance from professionals in making the big decisions. As you’re saving up for your home, you should consider hiring a mortgage broker.
It may seem like an added cost, but there are plenty of reasons why you should hire a mortgage broker. For one, they can help you find the best deal with the most agreeable terms. They can also give you access to a number of loan products, so all your options will be on the table. In the end, you’ll save a lot of time and money.
Buying your home is a complex process, but preparing yourself financially should help ease the burden. Remember, saving for your home deposit is just the start. Owning your own house means having enough funds to pay for the mortgage, property taxes, and maintenance repairs. Prepare your finances and yourself because although it costs a lot of money, your home will be the safe haven for you and your family to build memories in.