What’s your down payment savings plan?
Today’s lenders want at least 20% of the purchase price as down payment. For some would-be homeowners, that's a daunting hurdle.
For many, there's no easy way to increase savings. You must spend less to save more. But rather than consider the creative ways to cut costs, some of us fear never meeting our goals and promptly discard the notion of ever owning a home.
Owning a home does require sacrifices. Think about what you can do without. A night on the town? Costly (but unnecessary) monthly services? Credit card spending?
Establishing a sort of savings boot camp might be in order to reach that 20% goal. A savings boot camp should include a plan to tuck away as much money as possible in the shortest period of time through active sacrifice and a push for more or supplemental income.
There are also federal, state and local agencies that offer down payment assistance.
Your plan to save as much cash as possible will also help you to be a proactive saver after becoming a homeowner when expenses can increase.
Start by reading more about the home prices in your area and then learn more about how to pull together your down payment.
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