But, the important thing is to start.
Here we are going to go over a few steps that you can take in order to make your future home buying that much easier. Because, let’s face it, if you have a nice tidy sum sitting in a bank account for a down payment, the options you are going to have for a house really open up.
Save Your Monthly Payment
Once you have budgeted what your estimated monthly mortgage payment is going to be, save it. If you are living with your family right now and not paying any rent, then put aside each month into a bank account the amount of money that you are going to be paying in your mortgage. If you are paying rent, but you estimate to be paying more for a mortgage, then save the difference.
The key with this, besides the fact that you are going be saving money, is that you will become used to knowing exactly what you will be making each month for a payment. Then, when the time comes when you are all moved into your new home, it won’t be a massive shock to your system when that first mortgage payment is due.
Set up a Down Payment Savings Account
One of the best ways to save money is to make it hard to get to. So a great tip many people use is to open a separate savings account specifically for a ‘house fund.’ Set this up so you can transfer money from your regular bank account to this bank account easily.
This is great especially if you set up a monthly transfer that will go directly into your down payment savings account. Also, if you get extra funds, say a nice birthday check from mom and dad, a big tax refund or a bonus at work, you can send those funds to pad your down payment savings.
What makes an account like this an added bonus is to make it difficult to take the money out of this account quickly, this way you can’t easily dip into your down payment account if you feel like buying a new outfit or want to go on vacation.
Automate Your Finances
For many people, consistently saving money is really difficult. Many things can always come up over the course of a year that are going to cost you money, but if you want to be able to have a nice down payment, then you have to be diligent and disciplined.
Now, for those of us who are not natural savers, there is something you can do, namely automate your finances. What this means is that once your salary is deposited into your bank account, set up all of your bills to be paid and for money to be moved into your down payment savings account, automatically through your bank.
This way, by the third or fourth day of the month you have paid all your bills, and have sent money into your down payment savings account. What is left in your bank account is yours to spend how you like: out to dinner with friends, shopping, buying tickets to the game, etc.
Watch Your Savings Grow
You’ll be surprised how much your down payment fund will grow after even just a few months once you are really making a strong effort to save.
Any other savings pros out there? What do you think are some of your best suggestions and tips for making sure you have a down payment when it comes time to buy a home?
Let us know in the comments!