Preparing The Down Payment: Saving Hacks You Can Use

How much do you need to pay for the down payment on the house you intend to buy? It is important to know how much you’re expected to pay so that you can work on reaching that goal. Because the purchase of a house is one of the dreams that you want to turn into reality, you have to understand that you should work on putting together the money needed for the down payment first. Without the down payment money, there is no way you can find a mortgage lender who will lend you the remainder cost of the property.

How do you come up with the down payment money without giving up comfortable living conditions? Whatever your down payment goal may be, it can help if you look into the many possible ways you can raise the amount. Here is a list of a few down payment saving hacks you can try.

  • Automatic Bank Transfers

You can tell the bank that you would like a certain amount of your checking account funds to be transferred to your savings account every month. This way, you’d be able to make sure that you have set aside the funds needed every month, making the whole process seemingly mandatory. Besides, such process will save you from heartbreakingly saving for your down payment money you need.

  • The $5 Saving Plan

You can try to set aside every $5 bill that you receive as change and before you know it, you can save as much as $5000 on $5 bills alone. Although this may take a few years to complete, the point is not on the length of time needed to put the money together. It is about imposing self-discipline that could make you save for the down payment even faster.

  • Set Bonuses Aside

It can be tempting to reward yourself with something new whenever you receive a bonus, incentive or a raise. However, setting them aside instead of spending them on things that are not important can help you increase the amount you need for the down payment even faster.

  • Tax Refunds As Savings

Since you don’t expect to receive tax refunds, it is best to set them aside for savings. After all, you would want to see the product of all your hard work in the house that you’ve bought out of all the years you’ve worked.

  • Add Another Job

Why not? If you have the time, the energy and the skills, getting a second job should be a viable option. Not only will it help you save more, but it could free you from incurring debts just to be able to make ends meet.

The amount you need for the down payment may be too big for comfort at this point, but with a few saving hacks, you can get the money together in no time.

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