Strategies to Save for a Down Payment
- Figure out how much down payment you will need
- Don’t forget to consider moving and closing costs
- Closing costs include lender fees, appraisal fee, home inspection fee, and transfer fees which can total between 3% to 4%
- The most common mortgage loans are FHA loans and they typically require a 3.5% down payment
- Don’t forget to consider moving and closing costs
- Determine your timeline for saving
- Example: Based on needing $15,000 if you plan to buy a home in 2 years you will need to save $7,500 per year
- Divide that by 12 months which shows you will need to deposit $625 per month
- Naturally, the shorter your timeframe is, the higher your annual savings goal will be
- Example: Based on needing $15,000 if you plan to buy a home in 2 years you will need to save $7,500 per year
- Start saving for your down payment
- Transfer a fixed amount into a savings account each month
- Skip vacations
- Lower your monthly expenses
- Save your tax return
- Reduce high interest debt
If you feel like even with these tips you can’t buy a home because it seems unaffordable there are housing programs that can help you reach your goal (if you qualify). You can contact a financial coach with Family Houston to begin working on saving strategies to buy your home. Our services are offered at no cost to you. 713-861-4849.