A 6 Step Plan To Save Money And Buy Your First Home

By
Real Estate Agent with RE/MAX Executives

 

For many first-time home buyers, the idea of a 20% down payment is terrifying. It’s one of the biggest obstacles to homeownership. Maybe you want to own a home someday, but the thought of saving up thousands of dollars for a home purchase has deterred you from seriously considering it. Believe it or not, it is possible to save enough money for a down payment and make your dreams of homeownership a reality. Here are just a few of the ways that you can start saving.    

1. Track How Much You Spend Now

When saving for your first home, you’ll need to stick to a budget. Awareness of how much you spend can help you figure out where you can cut your costs. Consumer.gov outlines a few tips for creating a budget here.

2. Determine What You Can Afford

home buyer tracking finances

 

 

Even if you don’t plan to buy a home for a few years, figuring out how much you can afford for your home will make your savings goal more concrete. Don’t forget to include taxes, insurance, utilities, and maintenance in your monthly payment calculations.

 

 

3. Start Small

Start saving for your down payment and other homeownership costs as soon as you can. The earlier you start, the less you will have to cut your spending and the more time you’ll have to reach your goal.

4. Shop Around for Other Loans

If you find that a 20% down payment is unrealistic, you can opt for a mortgage that offers lower down payment options. FHA loans, for instance, offer 3.5% down, and VA loans offer no money down. Make sure to do your research. If you put less than 20% down on a home, you will have to purchase private mortgage insurance. We can talk more in depth about home financing options available to you.

home buyer looking at bank account

 

5. Make Your Savings Automatic

Many people find it’s easier to save money if it’s automatically transferred into a savings account every month. Check to see if your bank offers automatic funds transfer services, or ask if your employer can direct a portion of your paycheck into your savings account.

 

Web 1st Time

     

6. Create a Separate Savings Account

Establishing a savings account specifically for your down payment and homeownership costs is another great way to set aside money for a home. If you decide to automatically transfer money to savings, creating a separate account may make it even easier.          

 

 

We Can Make Your First Home Buying Experience Easier

When you’ve saved up enough money and are ready to buy a home, we have all the resources you need to make your homeownership dreams a reality. Have a question about owning a home? Call us.  

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The Kruschkas are long-term Prince William County residents with more than 30 years experience as real estate professionals serving Woodbridge, Manassas, Dumfries, Manassas Park, Bristow, Brentsville, Gainesville and Haymarket

Our Experience Isn’t Expensive – It’s PRICELESS

If you plan to buy or sell a home or property contact Karen and Art by Email or call us at 703-499-9279. Put our record of customer service, real estate experience and state-of-the-art technology to work for you

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Rainer
325,115
Bernadine Hunter, SFR, ACRE
Keller Williams Greater Columbus Realty - Pickerington, OH
"Finding Solution to Your Real Estate Needs"

This is great advice, especially for those first-timers who somethings think home ownership is out of their grasp

Oct 25, 2016 11:50 PM #1
Rainmaker
654,192
Kathy Stoltman
Rockwood Realty - Ventura, CA
Ventura County Real Estate Consultant 805-746-1793

Karen, I love these tips. I think if those looking to buy follow these tips, they will save themselves a whole lot of anxiety wondering if they can afford their new home.

Oct 26, 2016 03:16 AM #2
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Great tips, Karen Kruschka - I'm a huge fan of saving and love that you included that - it's something that some people struggle with and it's really exciting to watch your savings grow too! 

Nov 15, 2016 01:43 AM #3
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Saving here and there and being conscious of where you money goes is an important step to building a downpayment. You need to master a budget before you buy a home.

Nov 15, 2016 09:31 AM #4
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Karen Kruschka
RE/MAX Executives - Woodbridge, VA
- "My Experience Isn't Expensive - It's PRICELESS"

Bernadine Hunter, SFR, ACRE   Your comment is appreciated

Nov 15, 2016 11:27 PM #5
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Karen Kruschka
RE/MAX Executives - Woodbridge, VA
- "My Experience Isn't Expensive - It's PRICELESS"

Kathy Stoltman   Thank you - tha's the goal

Nov 15, 2016 11:29 PM #6
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Karen Kruschka
RE/MAX Executives - Woodbridge, VA
- "My Experience Isn't Expensive - It's PRICELESS"

Debe Maxwell It's hard to start , but very rewarding

Nov 15, 2016 11:32 PM #7
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Karen Kruschka
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- "My Experience Isn't Expensive - It's PRICELESS"

Debbie Reynolds It takes time to understand budegiting, but it is vital

Nov 15, 2016 11:34 PM #8
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