Saving For Home? Don’t Skip These Tips!

Saving For Home? Don’t Skip These Tips!

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Purchasing a home is among life’s most important achievements for most Americans and the biggest purchase many will ever make. 

Calculate the Amount You Will Require

In most cases, you will need a 20 percent down payment to purchase a house. However, many banks offer conventional mortgage loans that require down payments as low as three percent.  

Get Your Debt Under Control

Being in debt can make it challenging to save up for a house. The debt burden could make it harder to get a mortgage, as many of your earnings go towards repayments.

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Place Your Retirement Savings on Hold for a Short Time

Okay, this may not be the best option if you are nearing retirement. However, if you’re young and are actively contributing some of your earnings to a retirement account such as a 401(k) or IRA, you might consider temporarily transferring this money into savings for your down payment.  

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This one’s informal, yet a good option if done right.  If your family members ask you what you’d like to get on your birthday, anniversary, or other celebrations, inform them that you’d prefer to receive cash that you can put towards the down payment. 

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Request Gift Money

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Look For A Side Hustle

As the gig economy keeps on growing, there are several ways to earn a quick profit to increase the savings for your down payment.  For instance, take a look at spending a few minutes per week driving around for a rideshare service, delivering meals, taking dogs for walks, or pet sitting.

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