If you are thinking ahead, hoping to purchase your first home one day, one of the biggest hurdles on your mind is likely coming up with a down payment. While there are many first-time homebuyer programs that assist buyers with the process by accepting a lower down payment or closing costs, you’re still going to need thousands of dollars in the bank before you begin the process. There are some tried and true ways to start building up that fund, and with consistency, you might meet your goal sooner than you think.

Budget

First things first: if you aren’t already living by a budget, now is the time to start. There are lots of apps and methods available, all with their own pros and cons, but the important thing is to get started. Look at how much money you’re bringing in each month, how much your basic living expenses cost, and what you’re doing with the rest. Chances are good that if you aren’t currently living by a budget, there’s probably a lot of money leaving your hands that doesn’t need to. By setting a saving goal each month and putting a limit on your spending in some categories, you will likely save hundreds each month. Even if you’re on a tight income and only find an extra $100 per month, giving each dollar a place to go will help you develop a plan and a timeline for your down payment fund.

Side Hustle

Now more than ever before, you can make some extra money for your down payment fund in all sorts of creative ways. Many apps offer jobs completely according to your availability, like food delivery, courier services, or ridesharing. By working just one shift a week you can easily add hundreds to your down payment fund each month. If you’re a stay-at-home parent, you can look into babysitting other kids while you’re home with your own. Many cities also have facilities that pay you for donating plasma, where you can make around $100 per week for just a couple of hours of your time.

Subscriptions

Go through your bank statement and make a list of all the recurring monthly fees you’re paying. Maybe you have a gym membership you aren’t using or could cut out for a season. There might be a subscription you forgot you had and aren’t using or a free trial you forgot to cancel. You might be surprised how much you can save by eliminating the subscription and membership fees you don’t need.

Yard Sale, But Take It Online

Another easy way to make some extra cash for your down payment fund is to list items for sale online, through an app like OfferUp or Facebook Marketplace. Furniture, clothing, sports equipment, and more can bring in cash for things you aren’t using anyway. Even if the items don’t sell for much, it adds up slowly over time, and remember: saving for a down payment is far more about consistency over a long period of time than about large sums.

Ready to get started? Contact Me anytime to get in touch with a great lender so you know how much you can spend and how much you're going to need for a down payment.

 

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