Buying your first home is an overwhelming process when you start to look at everything that is involved. Our real estate agents are available to help you navigate your way through the different steps that are involved in buying a home. When it comes to saving for a down payment, it's important to know how much you should be saving and the different ways you can reach your goal.
What's your savings goal? — To know what your savings goal is, you will need to know how much you are willing to spend on a home. Once you have that figure, you will be able to set your goal at 20 to 25% of that amount. Depending on the type of loan you apply for, you may need up to 20% of the sale price, plus the closing costs and other fees.
Slim down your budget — The key to saving money is to slim down or tighten your budget. Monitor your regular bills for up to six months and make a commitment to lowering each one by a few dollars a month. Turn off the lights. Walk instead of drive. There are many ways to save money. It's up to you to find ways to trim your budget. The money you save can be set aside for your down payment.
Pause your retirement savings — Put your retirement savings on hold for a year or two. Saving for your down payment is a short-term goal that will establish your future foundation. Whatever money you don't spend on buying your home, you can apply it to your retirement account as a bonus.
Take on a side hustle — Taking on a side hustle is a great way to save money. When you are looking for Vacaville homes for sale, you will want to make sure you have enough money for the down payment. Prices are constantly changing, so having a down payment in hand is the best way to get your foot in the door of the home you want.
Eliminate excess — You don't realize how much money you are spending until you start monitoring where your money goes. Watch for those unnecessary expenditures and try to avoid them whenever possible. You will be amazed at how much money you can save.
Be proactive when it comes to unexpected expenses — Maintain your vehicle and get an annual checkup. If you already own a home, maintain it. Proper maintenance will help you avoid larger, unexpected expenses that could possibly deplete your entire savings. A few dollars for a maintenance call is much more reasonable than thousands of dollars for repairs or replacements.
When the time is right for you to start looking for a new home, it's important that you are prepared. Having the money for your down payment is one of the most important parts of the process. Contact us at your earliest convenience so we can streamline the home-buying process and help you get the home you have always wanted.