Are you finally ready to invest in a house? Whether it’s your first time buying a home or you’ve been down this road before, it helps to know what you’re doing.
Saving for a house isn’t easy. Sure, you can probably afford to make the monthly payments, but can you get approved for the loan amount you want?
And what about the downpayment? Depending on your loan, you could be required to provide up to 20% down.
But don’t get discouraged, we’re here to help. Keep reading for our top tips on how to save money for a house.
Table of Contents
1. Cut Back on Monthly Expenses
Start by cutting back on all unnecessary expenses. To save a significant amount of money, consider moving in with a friend or family member for a while. At the very least, here are some smaller ways you can save money:
- Stop eating at restaurants
- Cancel memberships and subscriptions
- Don’t buy coffee from coffee shops
- Limit yourself to a single TV/movie streaming service
- Stop online or unnecessary shopping
Most people can save hundreds of dollars a month simply by cutting back on things they don’t need.
2. Sell Unwanted Possessions
Next, learning how to save money for a house could mean selling some of your old stuff. Most people have way more than they need. For example, the average person only uses about 20% of their wardrobe on a regular basis.
Use the Facebook marketplace or Craigslist to post your items for sale.
3. Pick up More Hours at Work
Saving up for a house could also mean picking up more hours at work. If your work allows it, offer to pick up other shifts or fill in for people who call in sick, etc. It may not be your idea of a good time, but it will help you reach your goals sooner.
4. Start a Side Gig
If you don’t want to work more at the job you have, find a side hustle. For example, you can get hired on as a driver for Uber, Lyft, or Door Dash. You could also find freelance writing gigs, social media management opportunities, and more.
5. Find Ways to Make Quick Cash
If you don’t want another real job, there are other ways to earn quick cash. For example, offer to clean houses, do yard work, babysit kids, walk pets, and more around your neighborhood.
You could also rent your car out on the weekends or find a roommate to help pay your rent or mortgage before moving into your next home.
6. Enlist in First Time Home Buyer’s Programs
There are tons of programs out there designed to provide assistance to first-time home buyers. Even if you’re building a brand new house using a top home building company, there are government programs that can help offset the costs. You’ll need to take the first-time homebuyers class to be eligible but the benefits are worth it.
7. Make Sure You Have a Down Payment
Finally, when learning how to save money for a house, remember that you’re actually saving for the downpayment. No one expects you to save up hundreds of thousands of dollars in cash before buying a house.
However, as noted above, down payments can be up to 20% of the home’s value. On a $250,000 home, that’s a down payment of $50,000.
Looking for More Tips on How to Save Money for a House?
If you’re in the market for a new home, it’s vital to learn how to save money for a house. However, as you can see, there are a ton of options if you’re willing to work hard and make the necessary sacrifices.
And if you’re looking for more tips and advice on homeownership, be sure to check out some of our other articles before you go. Our blog is dedicated to helping people like you make the most out of their lives.