Buying a home is an important step, and it usually requires saving up a significant amount of money first. Mortgage loans often require a small down payment, and you may also need savings to cover things like closing costs and home upgrades. To save for these expenses, keep these best practices in mind.

Do:

Calculate how much you need.

Before you start saving, you should get an idea of an overall budget for your home. This should give you an idea of what type of down payment you’ll need or want to accompany your mortgage loan. From there, you can break down how much you’ll need to save each month to meet your goal.

Automate savings.

If you find it difficult to manually set aside savings, find a tool that will do it for you. Your bank may offer automatic transfers to your savings account each month. There are also apps and online tools you can use to round up purchases and place small amounts of money into your savings account every time you buy something.

Don’t:

Ignore your debt.

It’s often tempting for homeowners to stop paying down debts in favor of saving for a home. However, missing payments or only making the minimum each month can negatively impact your credit score, which can ultimately impact the type of mortgage loan you’re able to receive.

Leave zero wiggle room.

No matter how dedicated you are to saving for a home, you’ll likely encounter unexpected expenses. If you don’t leave yourself a bit of financial wiggle room during this savings period, it can be frustrating to divert some of your home savings toward other purposes. Build in a bit of a cushion for incidental expenses to avoid any financial roadblocks while preparing to purchase your home.

If you’re looking for mortgage loans or other financial solutions as you save for a home, Armstrong County Building & Loan Association can help. Based in Ford City, PA, the hometown loan and savings association offers a variety of financial services for those looking to buy a home, update their property, or save for retirement. Visit the association’s website to see current mortgage loan options or learn about other savings loans. To speak with a financial expert, call (724) 763-7137.