10 Ways To Save Up For a Down Payment - NYCM Insurance Blog

Find an Agent

Home Top Ad

Responsive Ads Here

Jun 24, 2019

10 Ways To Save Up For a Down Payment

How to Save for a Down Payment

You’ve been renting for a while now but lately you’ve been thinking about taking the leap and buying a house. Maybe you’ve been dreaming about getting a pet (something that can be difficult while renting) or maybe you’re excited about the prospect of having a yard, or being able to paint a room without the permission of a landlord.

Whatever the reason, the prospect of buying a home is both exciting and daunting. One thought that may have crossed your mind is, “How will I afford the down payment?”

If so, you’re not alone. Coming up with the money for a down payment is a common stressor among all potential homeowners. The good news is, there are many ways you can go about saving up the money. Here are some ideas to help you start building that savings account:

1. Re-assess your finances

Do you buy coffee from a cafe every day instead of making it at home? Do you have a gym membership that you rarely use? Look for areas of spending that you can cut back on while you’re in the home-buying process. Small expenses add up and cutting even miniscule line items out of your daily spending can make a big difference.


2. Consider a second job

Don’t worry, this isn’t a lifelong commitment! But picking up a second job while you’re house-hunting can help you start building towards that down payment. Use your primary job to cover current living expenses and put all your earnings from your second job aside in your savings account.


3. Sell some of your investments

Do you own stock? Or even have a couple of collectible records that are gathering dust on your shelf? Consider selling investments that you are not emotionally connected to for extra cash.


4. Skip the vacations

If you take an annual vacation, consider skipping a year or two. Keep that money in your savings account instead! Eager to get out of the house? Do some research on fun, affordable day trips in your area. You may be surprised what there is to do in your own backyard.


5. Get thrifty!

Consider selling things you no longer use anymore such as clothes, appliances, old toys and other knick-knacks. Facebook Marketplace, Letgo or Poshmark are all great options for selling your used items. This is also a great way to give your current place a refresh.


6. Remember, every little bit counts

Whether it’s recycling your bottles and cans for a refund or saving your loose change, it’s important to remember that even the small amounts add up.


7. Reduce your current living expense

Moving in with family members or looking for roommates to share in your rental costs will help you reduce your current living expense. Remember, this is temporary – you’ll be in your dream house soon enough!

8. Travel smarter

Cut back on gas costs by walking more or riding your bike. Public transportation and carpooling can also be convenient, affordable alternatives.


9. Create a budget

After you’ve assessed your newly-trimmed expenses, take the time to sit down and make a budget. There are many free resources available online that will help you track your income and spending, and ultimately stick to your financial goals. Putting everything down on paper can help you gain new financial perspective. Check out our tips for creating and managing a budget here.


10. Understand your down payment

This is a big one! Many potential homeowners enter the market not fully understanding their own finances and the home-buying process. Before house-hunting, determine a realistic budget for your future home and communicate this price range to your real estate agent. Spend time researching the different kinds of home loans so you’ll know what you want before finding the perfect house.

Follow these tips and you’ll be ready to buy in no time! While you’re at it, don’t forget to factor home insurance into your home-buying process. Click on the button below to learn more about protecting your new home with a homeowner’s policy.