Resolve to Save a Down Payment Next Year

Resolve to save a down payment next year when you’re making your New Year’s Resolutions. Get a jump on your home ownership goals with these tips. Saving for a down payment doesn’t have to be as daunting as you may think. The first step is to define your goal: how much do you need? Ideally, this amount is 20% of the purchase price of the home. But there are VHA loans that require less so check with your favorite mortgage lender before you start to save.

Now, break this goal into smaller monthly savings amounts. Make it even more doable by breaking your monthly amount into what you’ll need to save weekly. So now that you know your amount, how can you get there?

• Auto transfer from every paycheck a set amount into a savings account dedicated to your downpayment.
• Put any tax refunds, birthday money or bonuses into your down payment account without spending it.
• Eliminate your daily coffee shop coffee, after work drinks or a meal out, and put that money in your down payment account instead.
• Instead of investing in new clothing, shoes or jewelry, put that money into your account.
• Add income with a side job just for this year. Save everything you make.
• Once you have a few thousand saved, put it in a short-term CD at your bank to boost your earnings.

Remember, this is a short-term endeavor with the pay-off being you’ll be able to enjoy long-term home ownership.