3 Simple Ways to Save for a Down Payment – If you’re looking to buy a home, you may be wondering how best to start the process. While many of the steps people take end up being largely similar, there is one thing, in particular, you should start doing long before you choose a home: save up money for it. That may seem obvious, but too often it’s easy to jump into a major decision without adequately preparing for it financially. You don’t have to be one of those people, so here are a few things to get started on when preparing to make that important decision of what home to buy.

Reduce debt

As put forth by Experian’s Consumer Debt Study earlier this year, the average American holds about $90,460 in total consumer debt. Unfortunately, the sad reality is racking up tens of thousands of dollars in debt is a normal way of life for many Americans.

This shouldn’t be the case, particularly when you have to make major life choices such as what kind of home in which you’d like to live. Sometimes debt just happens, but getting it as under control as possible before buying a home will make all the difference in the long run. It’ll also make it easier to secure a good mortgage, as well as pay it down in a reasonable amount of time. This can help free up more money each month for a down payment.

Decide your down payment

You may have heard that you need to put at least 20% of the house selling price down as a down payment. That’s not always feasible. Sure, putting down as much as you safely can is wise, but sometimes you may have to pull back a little bit. Perhaps consider looking into a government-backed mortgage. You might be able to put down as little as 3%. Whatever decision you make, ensure it’s right for you and your family and begin saving up for it right away.

Get a side job

No matter how much your job pays, it never hurts to have a side job for particular projects you’re trying to save up for. Buying a home is no different. In 2020, there are endless opportunities to earn quick money that adds up over time. Whether it’s being a food delivery driver for Grubhub or babysitting or being an Uber driver, the possibilities are endless. If you decide to go this route for this purpose, make sure whatever extra money you earn is devoted to that house. Try to resist the urge to spend it needlessly when you’re trying to save for the future.

Saving for a down payment is not easy and it takes some motivation and perseverance but when you are able to put that money down, you’re already on your way to homeownership.

For more information on buying homes in Woodland Hills and the Sherman Oaks real estate area that knows these types of loans, contact me at any time.

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