Morristown TN Real Estate For Sale - 4 Smart Money Habits That Will Help You Save Up A Down Payment Faster

By
Real Estate Agent with Elite Realty Group

 

4 Smart Money Habits That Will Help You Save up a Down Payment Faster
Are you ready for home ownership? The prospect of owning your own house or apartment is an exciting one, but with any financial transaction this large there are some things to consider. The first is your down payment – that is, the initial payment you’ll put against the cost of the house to reduce the amount that you’re borrowing in a mortgage. Let’s have a look at four habits that will help you to get your down payment saved up faster.
Build (And Stick To!) A Reasonable Budget
The first and most obvious tip is to stick to a reasonable budget. Determine how much you have coming in and going out of your bank accounts and credit cards each month. Group everything into areas like ‘food,’ ‘utilities,’ ‘dining out,’ ‘entertainment’ and more. Then, reduce each area to a reasonable amount and avoid any overspending.
Figure Out Your ‘Latte Factor’ And Eliminate It
If you’re unfamiliar with the term, a ‘latte factor’ is that one consistent purchase that you make each day which, over time, drains your bank account. For example, if you spend $5 each day on your coffee habit that adds up to almost $2,000 per year in unnecessary costs. Pay close attention to your spending habits and try to eliminate anything that you can.
Make Automatic Payments To A Down Payment Fund
If you’re working a stable job and have regular pay periods, you may want to explore setting up a separate savings account for your down payment. Once you have this account opened, set up automatic deposits from your regular bank account after each pay day. This limits your ability to spend your cash while building up your down payment fund automatically.
Don’t Carry Credit That You Don’t Need
Finally, try not to carry credit that you aren’t going to use. This includes department store credit cards, extra bank credit cards or lines of credit. While it won’t necessarily harm your credit score to have available credit, if you do have it you’re far more likely to use it than if you don’t. You’ll need to be disciplined to save up your down payment. So don’t bother with extra credit that may be too tempting to resist using.
These are just a few of the smart money habits that will help you get your mortgage down payment saved up as quickly as possible.
Watch our Facebook Live Show every Wednesday at 12p.m. est. Elite Realty Group 423-307-8566 Licensed in TN Equal Housing Opportunity
*article by Dina Nemat

The Elkins Home Selling Team with Elite Realty Group provides services with Morristown TN Real Estate For Sale and Morristown TN Homes For Sale to home buyers and home sellers in Morristown TennesseeWhitesburgTalbottRussellvilleSeviervilleBean StationDandridgePigeon Forge and surrounding communities.

We specialize in working with Home Sellers in getting their homes listed and sold. We utilize the latest and most up to date marketing materials in assuring the job gets done quickly and with the least amount of hassle. Our homes are listed on over 32 different Real Estate web sites including realtor.com, yahoo.com, trulia.com and many others. Each office independently owned and operated.

Elite Realty Group is a full service real estate company serving Morristown TN Real Estate For SaleJefferson City TN Real Estate For SaleTalbott TN Real Estate For SaleRussellville TN Real Estate For SaleGrainger Co TN Real Estate For SaleDandridge TN Homes For SaleCherokee Lake TN Homes For Sale and Douglas Lake TN Homes For Sale.

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Comments (2)

Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Norma, great post, and some buyers do need some guidance to build a nest egg for a down payment.

Aug 30, 2021 07:12 AM
Norma J. Elkins

Joan Cox I agree I thought it was pretty useful too.  Thanks for stopping by and have a wonderful Tuesday!

Aug 31, 2021 09:40 AM
Kristin Johnston - REALTOR®
RE/MAX Realty Center 262-567-2455 - Waukesha, WI
Giving Back With Each Home Sold!

Great information.  Thanks for sharing and have a wonderful day!

Sep 08, 2021 06:54 AM