6 Great Ways To Save For a Home
Here are some creative ways to put money aside for a home purchase
Buying a home these days will require you to put a good amount of money down as you secure your mortgage. With home prices continuing to rise as they are it only means that you will need even more to put down. You could put less than 20% down but that can leave your offer looking not as strong in today’s highly competitive market. So unless you are moving a good amount of equity out of a home that you may be selling, then here are some helpful ways to save to purchase your next home.
Pay Your House Fund First
A good way to keep your house funds from getting mixed up with other savings is to keep separate it in its own account. Train yourself to pay it first, just like it’s one of your bills every month for best success. Automatic and recurring transfers are also a great option if possible.
Fund Your Down Payment
Some buyers are lucky to have friends and family that will help contribute to your house fund. There are some options out there like HomeFundit or Feather The Nest which allow you to reach your goal in a similar fashion as GoFundMe. You can also set target amounts and deadlines too with these systems.
Accrue Spare Change
Some apps or banks will help you save by rounding up your payments to the nearest dollar and will place the extra spare change into a savings account that you have set for a home. Over time these things can really add up to something!
Research Assistance Programs
Some local governments offer down payment assistance program options and grants. The majority are typically income-qualifying but there are others for teachers, firefighters, and the like.
Audit Your Taxes
If you are someone who gets a noteworthy tax return each year then you may want to consider lowering your exemptions to take home more cash in your regular paychecks and invest and save it.
Check Retirement Savings
This should really be your last resort. Some important things should be considered if you go this route like your age, whether or not your IRA or 401k allows a one time withdrawal for down payment with no penalty and the like as replacing this money will take time of course. Consult with your financial planner or accountant as they are the best person to shed light on this option for you.