It’s not the most interesting or exciting part of buying your first home, but you need to have a plan to save for the down payment that will get you the keys to the front door. This is one of the preliminary mortgage requirements you’ll need to sort out. The sooner you get started with this big step toward applying for a mortgage, the sooner you can begin looking at the listings that are in your price range.
Like a lot of other things you need to do to get that first home, saving for a down payment requires a plan you need to stick with. This usually involves giving up at least some of the luxuries you enjoyed as an apartment dweller and you should always be looking at socking away at least 20% of the price of the home you are considering.
Bagged Lunches
Start by cutting out all the small stuff you can. If you’ve been lunching at the local restaurant that’s just around the corner from work or eating the daily special from the cafeteria , you can start saving by bagging your own lunch. With a little research, you can come up with some variations that may be better for your health anyway.
Smart Numbers
Be smart with the numbers. Sure you’re looking at putting away enough to get preapproved so you can actually start looking in the right price range, but you need to add some additional expenses into the mix that are more than likely new to you as a first time homebuyer. For example, it doesn’t really matter whether you’ve been living in an apartment or staying with your parents, paying property taxes on a house and utilities will be a new drain on your accounts .
Saving for a down payment is one of the first mortgage requirements you’ll need to become accustomed to. It’s a good first step when you plan on applying for a mortgage.
