Traditionally, a home buyer will have to put down a 20 percent down payment on a Mount Pleasant home he intends to buy. However, some lenders have made it possible to purchase a home with as little down payment as possible. Some don’t even require a down payment at all. However, to receive the lowest possible interest rates and to get out of debt faster, it’s still wiser to make a down payment, and make it the biggest amount you can come up with.
So how do you get started on saving on tens of thousands of dollars for the home of your dreams? Your Mount Pleasant homes agent offers you strategies to help you achieve your particular financial goal.
Prioritize
The goal of saving money is all about prioritizing. Are you willing to give up on certain luxuries and comforts to reach your goal faster? If saving up for a home is your top priority, you need to take a look at your regular expenditures and identify areas where you can cut back.
Live off of one spouse’s income
If you’re married, you may decide to set aside one spouse’s paycheck for buying a house and use the other one’s for the necessary expenditures. Of course, not all couples may be able to afford such a significant departure from what they’re used to, but the practice could lead to really innovative saving strategies.
Sell your car
A car represents one of the biggest expenses in a single household. Aside from fuel, there’s also maintenance costs, insurance, depreciation, and even repairs in the unfortunate event that your car figures in an accident. If you have two cars, you may want to think about selling one. To address the transportation troubles of having only one car, you may decide to move closer to work, use public transit, carpool, bike, or even walk to work.
Put your savings to work
If your plan is purchase a home within the next five years, you may want to invest whatever money you have in high-yield savings accounts. This way, you’ll definitely earn more interest than what traditional savings accounts are offering these days.
Follow these tips, and once you reach your target amount, keep following them. These tips can be handy for reaching your other financial goals as well. For Mount Pleasant homes that suit your needs and budget, work with a trusted real estate firm such as Real East Van.
Source:
8 Ways to Save a Down Payment for a Home or Any Other Big Purchase, MyMoneyCoach.ca
How to Save for a Down Payment on a House, TheBalance.com