Buying a home is a significant investment. Even if the
mortgage payment seems affordable, the first hurdle is saving up the down payment.
Depending on the kind of mortgage you get, you may need to save up to
20% of the home’s purchase price as a down payment, which you will
pay as a lump sum at the closing. Although saving this much money can
seem daunting, it is achievable if you make a plan. Take a step towards
purchasing a home with these tips for saving up a down payment.
Make It Automatic
You may decide to transfer a certain amount of every paycheck to your savings
account, but unless you make it automatic, you will find that it is easier
said than done. Consider having a certain amount of your paycheck deposited
directly into your savings account, or set up weekly, biweekly, or monthly
transfers from your checking account to your savings so that you don’t
even have to think about it. When you take the responsibility to manually
save money out of your hands, you won’t be tempted to skip transfers
or get sidelined.
Save Your Windfalls
Instead of using windfalls to spend more, put them directly into your savings
account. For instance, if you get a raise, put the difference between
your current pay and your new salary into your savings for a set period
of time. All bonuses, inheritances, tax refunds, and gifts can also go
into your savings so you can build money faster without changing your
Look for Extra Income
Chances are that you have a marketable skill that can help you make extra
money without interfering with your work schedule, such as tutoring or
teaching piano. Put all of your extra income directly into your savings.
You can also consider seasonal work to temporarily boost your income.
At Westmark Credit Union, we’re committed to helping you achieve
success with your personal finances at all stages of life, from your first
checking account to your first mortgage. Visit your branch to discuss
purchasing a new home or learn more about our competitive mortgages by calling (208) 523-1071.