Even though the dream of home ownership may still be a distant one for some of you, don’t give up. Most individuals don’t realize how saving up enough money for a down payment on a home can be one of the most difficult steps towards that investment. Depending on the type of mortgage you plan to apply for, a down payment can total up to 20% of a home’s purchase price. Here are 3 helpful tips that you should consider for making that down payment part of your financial regimen.
Things You Should Know To Save Money For a Down Payment
Go after a job promotion – if you’ve been at your job for a while now and have been performing well, and if an opportunity arises for taking on more responsibility, this could help you save up the money for that down payment quicker. Saving up for a down payment could be just the motivation needed to increase your earnings by getting promoted at work. This might mean asking for a raise or undergoing more training to learn new skills. In any event, you could take that additional income and put it in a savings account solely dedicated to a down payment.
Make small contributions when and where you can – a huge windfall would be great but not necessary when it comes to saving up for a down payment on a home. Even a contribution as small as $5 or $10 put away on a weekly basis can accrue significantly over time. While small contributions may not necessarily be enough to fund the entire down payment, even small amounts added every week will be motivating in itself. Plus, watching your down payment savings account grow will help you maintain your determination and enthusiasm.
Use your hobbies or skills to start a side business – you would be surprised how a specific hobby or skill can easily be converted into a money-making venture if applied properly. The list of side hustles includes digital design, driving for a ride-share company, photography, and much more. Additionally, talk with other people who are working a side hustle to find out what they’re doing and what it took for them to get started. Add a little effort and your spare time, and that side hustle could just be the money maker needed for that down payment.
Contact Mortgage Experts With Front Range Mortgage
For more information about home mortgage loans or to speak directly with a mortgage broker, call Front Range Mortgage for Colorado-only mortgage experts call (719) 540-2020 (in the Springs, or (303) 500-1900 (in Denver). Our experts are available to discuss your requirements and will ensure that you get personalized attention.