Thinking about buying a house soon? Going to be crafting a plan on when, where, how and the financials of buying the new home? Well, here are some tips on how to save money for that downpayment in different ways!
Quick note: Find out how much does the lender require as a downpayment so you can start saving accordingly.
Create a new monthly budget
If you have a certain amount of money as downpayment to save for, set aside a monthly budget based on your income, required spends and required savings.
- Try and stop impulsive spending – you don’t realise how much you spend until you have already spend it.
- Spend smart – try using coupons or discounts available!
- You can reduce or stop spending on things you don’t need.
- Avoid large spends before buying a home such as a car. Save all the money possible for the downpayment.
- If you get any returns on investments or tax returns – save them! Any large bundle of money being available is alwasy good!
Quick note: If you pay a larger downpayment, your monthly payment will be less, and so will be the interest on the loan for the house.
Downplay the vacation for that downpayment!
While vacations are key to detox from reality and recharge, if you’re saving for a downpayment – you can always take smaller vacations over larger, luxurious ones.
This way, you’re not only taking that well deserved holiday but you’re also keeping an eye on the spends and how much to save for the downpayment.
Gift Letters and lots of support from the family
If you think it’s okay to ask your family for help with the downpayment, do it! Some lenders usually accept money from family by being given a Gift Letter from the family member that’s helping with providing the funds. More support, less stress!
Quick note: Always have a plan for the budget and how much to save for.
Buying a home is not an easy decision to make. It involves a lot of thinking, tracking budgets, maximising savings and finding the best, most beautiful home there is for you!
You can always get in touch with Flyhomes for any questions about buying a house. Flyhomes also has a financial suite to help you with home buying.
