One of the largest cash payments you will make in your life is the down payment on a home loan. Most home buyers when putting forward down payment money do so after saving up for a considerable amount of time. Whether a buyer is purchasing with a 20 percent down payment and a conventional loan or putting 3.5% down on an FHA loan we can all agree that finding more sources of money to put on a down payment would be helpful when it is time to make the official payment.
If you are looking for more ways to come up with down payment money for a home, we have some helpful ways to find more down payment money that you may not have thought about.
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Take a Fine Tooth Comb to Your Current Budget
You may already have the means to save a significant amount of cash and not be aware of it. If you are ready to get very serious with your efforts to save for a new home, take a few minutes to go over the fine details of your daily/monthly budget.
Look at things you might be spending money on that are not a bare necessity. If you spend money on coffee every day or buy your lunch at work this is a great place to cut back. You can cut back completely and make coffee and lunch at home or you can cut back to only purchasing these items one or two times a week. You will be surprised at how much money you can save by cutting back on a few items you don’t ultimately need or can cut back on for just a little while to save for that down payment. It could end up being hundreds of dollars a month.
More: Pre-Approval for the Home Loan Makes You a Qualified Buyer
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Sell Things You Don’t Use
Many of us probably have several items laying around our homes that we do not use. The good thing is there are several ways to sell your unused items on the internet. You can sell anything from old clothes to furniture to maybe that RV that sits in the extra space in the driveway going unused.
Added Bonus: it will be easier to move when you have less stuff to pack and move.
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Take on a Side Hustle
There are many opportunities out there to pick up another job with limited hours. If your schedule allows this is a great way to make some money for saving. You could even start your own side business selling goods you make or for your services. For example: walking dogs, tutoring school kids, babysitting, selling crafts, house cleaning etc. There are many apps online that offer quick jobs where you get paid the same day as well.
Related: The Advantage of Low-Interest Rates
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Your Assets
This is only ideal in some special circumstances. Make sure you get the advice of a CPA, your loan officer, and other very money-savvy people first. Sometimes it is possible to take some money out of a retirement plan or 401k penalty-free when you are applying the money to the purchase of a home.
If you are ready to get serious about purchasing a home and saving up for a down payment, there are ways to make it an attainable reality. If you are interested in buying or selling a home in the near future let the team at Gulf Coastal Properties real estate help. Contact us anytime.
