Tips on How to Save for a Home

Buying a home for the first time is a huge commitment, but one of the best investments. The problem is, it is quite common to not know where to begin saving up a down payment. There are so many myths out there as to how much you need to put down, where to get a loan, etc. EZ Money is here to offer up some tips as to how to save for a home of your own and where to begin.

Cut costs out of your daily life. This may feel as though it won’t add up to much, but you may be surprised as to how much unnecessary money you are spending. Do you really use that TV subscription anymore? How about that gym membership you never use? Do you need to pay to have your food delivered? What seems like small costs, can really add up as the days and months go by. Make a list of your daily spending and see where you can cut out a cost or two in order to budget for a down payment.
Set aside a certain amount of money each month. When your paycheck comes in every couple of weeks, have a plan as to how much you will set aside or even put into a savings account. You can do this paycheck-to-paycheck, or even month-to-month. Set a reminder for the last day of every month to transfer this money, whether it is $50 per month or $2,000. Soon enough, you will have compounded enough money to think about a down payment.
Reduce your debt. Though it may not feel as though you are heading in the right direction when it comes to paying off your debt instead of saving for a home, this will help you when it is time to buy. One of the first things lenders will look for when you become a mortgage loan candidate is your debt-to-income ratio (DTI). The more debt you have, the more you will pay in interest as well as have a higher required down payment.
Get a roommate. Even though it may not be an ideal living situation, having a roommate can quite literally cut your living expenses in half. Rent out your spare bedroom and save hundreds or even thousands each month. Remember, this extra addition to your home is temporary, and soon you will be living in the lap of luxury in your own space.

Budgeting for a down payment can be just that simple! Begin following these simple tips, and you will be well on your way to being a homeowner.