Owning a home is a goal for many people. Philly has some great real estate to offer anyone looking, from first time home buyers to seasoned investors. However, saving enough for a down payment can be a major hurdle, no matter what the situation. Especially if you are aiming to make the traditional 20% down payment, it can seem like a monumental goal. Fortunately, a few tips may help you get that down payment sooner.
1. Automatically Save With Payroll Savings
Today, most people have their pay direct deposited into their accounts. This convenient method of payment can also be used as a convenient savings tool. You may be able to opt to automatically put a certain amount of that deposit into your savings account. Consistently saving is the best way to reach your down payment goal.
2. Save Windfalls
You got a big tax return, won a contest or inherited some money. For many people, this is a time to celebrate with a vacation or a fancy meal out. If you want to reach that saving goal, however, you should consider putting your windfall straight into your savings account. After all, you didn’t have the money before and weren’t relying on it. This way you can put it towards reaching a life goal.
3. Cut Costs
Your saving towards a real estate purchase may be slowed by your bills and current expenses. Make a budget and review what you are paying for. You may realize you are paying for cable TV to only watch a game on autumn Sundays. Try eliminating whatever you don’t need so more of your monthly budget can go towards saving.
4. Sell Things
Philly has an active and thriving Craigslist community and many neighborhoods have social media groups dedicated to selling used items. If you are like most people, you own a lot of stuff you simply don’t use anymore. So, sell those things. Someone else can benefit from them and may be willing to pay you for them. Another plus is that reducing clutter will make moving into your new home easier.
5. Make Your Goals Achievable
One of the biggest errors people make with real estate saving is trying to go too big too quickly. Don’t try to save your full down payment in a few months. Chances are you will only get frustrated. Instead, set achievable goals and save over time. You’ll have enough before you know it.
6. Learn Your Options
Knowing how much you’ll need to save and all of your options makes a huge difference. If you are considering starting to save for a down payment, then it’s great to know all of your choices beforehand. There are more loan types than the traditional 20% down. Some lenders have down payment options as low as 3%. Make sure to contact a lending professional for them to go over the best plan for your financial situation. If you need help finding a great local mortgage professional, reach out to me and I’d be happy to make the connection.
Get the Best Help in Philly
Your dreams of owning a home or investment property might be easier than you think! Working with the right real estate professional is key. Contact Mr. Philly Real Estate to help you find that Philadelphia home you’ve always wanted.