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Whether you’re a first-time buyer or looking to upgrade to a larger space to accommodate a growing family, a new home purchase is always exciting. Saving up the money to invest in a piece of property takes time, however. Follow the tips below to get the cash you need quickly for a down payment.

How to Save More for Your Dream Home

1. Set a Goal

Calculate how large of a down payment you need. A home loan likely won’t cover more than 80% of the cost, so expect to make a 20% payment to secure a good deal. Then, create a time frame; if you need $50,000 up front and want to buy a home in five years, prepare to save $10,000 annually.

2. Nix the Little Luxuries

List your “luxury” habits and add up how much money you can save by skipping these purchases. For example, ordering takeout four nights per week can mean $100 a week, or $400 a month. For one year, that’s $4,800 — half of your annual savings goal.

3. Automate Your Savings

home purchaseCreate a savings account exclusively for your down payment. Automate the savings process so that a certain percentage of your regular pay is transferred directly to this account every month. This keeps you from spending the money.

4. Save Your “Extra” Cash

Whether it’s a year-end bonus or a tax return, you likely expect a cash influx at some point during the year. While it can be tempting to put it toward Christmas presents or a vacation, deposit it into a savings account instead. This gives the home purchase fund a quick boost.

5. Pay Off Credit Cards

When you’re focused on saving for a home, paying off credit cards may lose priority. However, addressing these debts will improve your credit score, which is necessary if you want a mortgage.

 

Making a home purchase can be nerve-wracking. Let Dan Main of St. Peters, MO, take the stress away by serving as your dedicated mortgage loan officer. Dan has over 20 years of experience and is known for being helpful, detail-oriented, and efficient — as his online testimonials show. For an appointment, call (636) 284-4144.

 

imageDan Main: NMLS # 502036
Flat Branch Home Loans NMLS # 224149
947 Waterbury Falls Dr
O’Fallon, MO 63368
This is for informational purposes only and not an offer to lend or extend credit.

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