You don’t need a realtor like Scott Glenney or a loan officer from a bank to tell you that saving up for a down payment is one of the most important parts of the home buying process. Although there are some programs out there that will minimize how much you’ll need for a down payment, conventional wisdom says that you should put down at least 20%. This will let the bank you’re financing with know that you’re serious about buying the home and will be more likely to pay off your loan, improving your chances of qualifying for financing.
But Where Do You Start?
So how do you save up for a down payment when you already have a bunch of expenses that you must pay for every month? As a realtor, Scott Glenney has worked with clients of all income levels and helped them find the home of their dreams. Here are some ways Scott Glenney recommends you try to increase your savings:
- Open a Savings Account that Is Completely Dedicated to Building Your Down Payment
- Set up Automatic Transfers from Your Checking to that Savings Account Based off When You’re Paid
- Save Your Tax Refunds and Any Other Bonus Money You Receive
- Get a Second Job or Look for Ways to Increase Your Income
- Decrease Your Expenses and Cut Out Any Unnecessary Waste
If you do these things, you should be able to start building a nest egg that you can use to purchase your very own home.