With rental costs on the rise, and the amount of debt at an all-time high, it’s no wonder that many potential home buyers are unable to save up for a down payment. If you’ve found yourself in this boat, don’t lose hope. With the help of technology and a little foresight, you can save for that down payment — even sooner than you think.
With rental costs on the rise, and the amount of debt at an all-time high, it’s no wonder that many potential home buyers are unable to save up for a down payment. If you’ve found yourself in this boat, don’t lose hope. With the help of technology and a little foresight, you can save for that down payment — even sooner than you think.
Here’s how:
Enable automatic deposits. Set up automatic deposits into your savings account. Schedule them right after paydays, when you know you’ll have the cash available. If you can’t automate your deposits, set a reminder to transfer money every two weeks.
Try a round-off app. What if you could round off every purchase you make to the nearest dollar and then put that extra cash to good use? Apps like Acorns and Clarity Money round off your transactions and either invest your money or add it to a savings account.
Cut down on spending. Find an area of spending that you can afford to cut back on — maybe eating out or grabbing to-go coffees. Put the money you would have spent on these items into your down payment savings account, you’ll be surprised at the impact.
Sell your stuff. Do a little spring-cleaning, and declutter those closets, drawers and shelves. Sell things you don’t want on Facebook, Craigslist or a consignment app. It may seem like a small amount each time, but when added to an interest-paying savings account, it’ll make a big difference.
Remember, you may not need the traditional 20 percent down payment to buy a home. In fact, thanks to low down payment loan options and a variety of down payment assistance programs, you may be able to buy a home with less down than you think. For example, FHA programs let you pick up a mortgage with as little as 3-1/2% down if your credit score is at least 580
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