How to Save for a House

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If you're trying to save for a house, here are some of my top tips. This isn't a boilerplate approach. You can customize these tips for your own situation.

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Whether you’re buying real estate as an investment or you’re planning to occupy the home, here are my tips to save for a house.

When the time comes for you to buy a house there will be a lot of things that will happen fairly quickly. A realtor will start calling you to come and view homes and lenders will start competing for your business. But the one thing you will want to have in place that will affect everything else in the home buying process is the down payment. To help you get that payment ready here are some things that you will have to think through.

How Much Can I Afford?

This question is one that varies from one person to the next. In order to best answer this question, you will need to know what your expenses are and how much extra money you have at the end of each pay period. To determine this figure, follow these steps:

What Should I Be Saving Each Month for the Down Payment?

The answer to this question is fairly simple. You should be saving as much as you possibly can. Especially if you are wanting to buy a home in a short amount of time. The amount you save is going to depend on a lot of things. It will depend on your monthly expenses and any incidentals that you may have come up. It would be a good idea to have an emergency fund to cover the unknowns until you are ready to buy. The amount you save each month will vary based on how much your pay and bills fluctuate each month.

Here are some ideas to help you with developing that down payment.

There is always money waiting to be found within your own budget. Simply cutting $600 per month will add up to $7,200 per year. That is a real good start to saving up a down payment.

Renting a Place Seems to Eat it all Up

Renting a home is not an easy task to do while you are trying to save for your next major home purchase. Depending on your rental contract you will find that there are a lot of extras that you must pay along the way. There are even some things that you pay and are just out of your control.

One easy way to control your expenses while renting is to negotiate your rent each quarter or year. This works to your favor if you have been the “perfect renter.” Property owners do not like having to go through the process of finding a new renter. Especially if you are that renter. You might be able to get them to cut your rent by $25 or more by simply asking.

Offer to do jobs around the property for a reduction in rent. There is always a project list that needs to be done with a rental home. Offer to paint the inside of the home for a free month rent. It would be cheaper for the owner and better for you to not have to deal with a painting crew messing up your home.

Where to Save Money Along the Way

There have already been a few places identified where money can be saved. But there are even greater places that money can be found to help you save for the down payment. These ways have the potential of saving your thousands of dollars per year.

Getting Real Assistance with Your Down Payment

The more a home costs means the more you will have to pay. Unless, you opt for a non-traditional method of purchasing a home. There are programs on the market that you can use to buy your first home with. Some of them have a down payment requirement of around three percent.

Saving for your first home does not have to be a never-ending process. You can save money and get the help you need along the way. The process will take some time, but the end result will be well worth the effort.

About the AuthorCharles at infoSpike

Charles is the founder of infoSpike.com. His real estate investing experience started in 2004 and he is currently focused on rental property projects. He enjoys learning about real estate investing, personal finance, and marketing. Read more about Charles here.