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My Mortgage Blog

You've got the job, the credit and desire for a house. But there's one problem - no down payment!

Saving for a down payment can be one of the most challenging parts of becoming a homeowner. The cost of rent can be so high that it leaves little room to save the minimum 5% down payment required to buy a home. But you can be savvy with your savings and before long have enough for a down payment with these 7 Money Saving Tips!

1) Open a High Interest Savings Account: 
First and foremost consolidating your savings into a high interest savings account can start earning you money and every little bit helps when you're saving for a down payment.

2) Apply for a Cash Back Credit Card:
For those who like to collect points by using their credit card for everyday purchases and paying it off at the end of the month, be sure to check out credit cards that offer cash back on your quarterly summary. It's a great way to earn back potentially hundreds of dollars off of your everyday purchases, allowing you to bank the difference in your savings account.

3) Track Your Spending:
Now that you have a high interest savings account and a cash back credit card opened, start tracking all of your spending by category. It may sound silly, but tracking your expenses allows you to see where your money is going and evaluate what can be reduced.

4) Become More Minimalist:
Reducing (even temporarily!) celebrations, gifts and unnecessary expenses can help free up cash flow and save you money. Money that you could be earning interest on!

5) Become Environmentally Friendly:
Regardless if you currently pay for utilities, becoming more environmentally friendly will help save the planet. But if you DO pay for utilities, it will save you money, as well! Turning off the lights when you're not in the room, not letting the water run, or installing a low flow showerhead and energy efficient bulbs are all great ways to reduce your energy consumption and therefore reduce your utility bills.

6) Watch for Sales and Use Coupons:
Buying in everyday items in advance or using coupons for products/services you'll need will helps save you money on your everyday household expenses. Costco can be a big time and money saver for the bulk shopper!

7) Set a Budget:
Without planning you are just flying by the seat of your pants! Set a savings goal and deconstruct it by working backwards to formulate a plan to achieve your goal. If your goal is to save $5000 in 10 months, you'll have to find a way to save or increase your income by $500 per month. This may be easier than you think by following the previous steps!

Remember to dig the well before you're thirsty! Buying a home takes time and preparation. Most people do not decide to buy a home the same day they make the offer. It's ok to reach out in advance and discuss your options and put together a plan. In fact, I recommend it! Talk to your mortgage professional 3-6 months in advance is ideal and will help make you feel prepared when the house hunting begins!

I'm here for any questions and will help you make a home ownership game plan!

Sarah Nixon-Miller
Mortgage Broker