Kathy Foran - REALTY EXECUTIVES Boston West



Posted by Kathy Foran on 11/26/2017

You want to buy a house, but you know that you need to save as much money as possible for a down payment. Although you've tried to save money in the past, your best efforts have failed to help you collect the funds that you'll need to make a down payment on your dream residence.

Let's face it saving for a home can be difficult. Fortunately, we're here to offer creative ways to help you get the money that you'll need to make your homeownership dream come true.

Now, let's take a look at three creative ways to save for a down payment on a house.

1. Start a Friendly Competition

Competition often brings out the best in homebuyers. Much in the same vein, you and your friends may be able to compete against one another to see who can save the most money for a down payment on a home.

If you and your friends intend to buy a home together or separately, a friendly competition can make a world of difference in getting the required funds for a down payment. In fact, you can even award the winner of this competition with an "Ultimate Saver" trophy or other fun prizes.

Ultimately, a friendly competition is a great way to have fun with friends and save money for a down payment on a house at the same time. Regardless of who wins the competition, you'll notice that your down payment savings will increase, moving you one step closer to acquiring your ideal residence.

2. Use a Rewards System

Saving for a down payment on a home may seem like a long, arduous process. However, if you build rewards into your day-to-day savings efforts, you can earn incentives as you reach various milestones.

For instance, you may want to reward yourself with a special dinner every time that you reach a savings milestone. Or, you can always celebrate hitting a savings milestone with a trip to the dog park with your puppy.

3. Trim the Fat from Your Budget

It sometimes can be tough to remove cable TV, takeout meals and other excess items from your budget. But if you consider the long-term benefits of these short-term sacrifices, you may be better equipped than ever before to save significant funds for a down payment on a home.

Look closely at your daily, weekly and monthly budgets. Then, you can determine which budget items are essential and which are not and trim the fat from your budget accordingly. This will allow you to speed up the process of saving for a down payment on a house and ensure that you can achieve your homeownership dream faster than ever before.

Lastly, as you prepare to explore available homes, don't hesitate to reach out to a real estate agent for extra help. By hiring a real estate agent, you can get the assistance that you need to discover a great house that falls within your price range.





Posted by Kathy Foran on 5/7/2017

A new house is within reach if you find a lender who doesn't require a down payment or you to secure a mortgage. But, that's probably not the type of lender you want. A quality lender will check your credit history, background, work history and ask how much you're ready to put toward your down payment.

How you could put 20 percent or more down on a new house

It's recommended that your down payment be at least 20 percent of the total cost of your new house. Add in the fact that the average price on a house in the United States exceeds $300,000 and you're left to find a way to raise $60,000 or more.For many Americans, that's equal to an annual salary or more.

As impossible as it may seem, you can raise enough money to put down on a new house.It may call for a short term sacrifice as it regards your living arrangements. You might have to live with your parents for a year or longer.

Another sacrifice that you may have to make regards entertainment and clothes. Instead of buying live concert tickets, stream concerts live on your computer. Hand wash delicate clothes, so that you can wear the fashions until you've raised the down payment.

Get serious about saving for a down payment

Make saving a down payment for a new house a priority. More actions that you could take to save your down payment are to:

  • Cut your commuting costs - Try carpooling. You can also sign up for commuter savings programs through your employer. Heavily trafficked business areas might operate separate commuter savings programs. Your local Chamber of Commerce or the mayor's office may be a good first contact to learn more about these savings programs.
  • Hold yard sales and deposit all proceeds from the yard sales into a savings account that goes solely toward your down  payment.
  • Offer to take on extra projects at work. Put all of your overtime pay in the savings account.
  • Pay off credit cards. If you don't pay credit cards off completely, start paying them down to reduce your monthly minimums.Put this extra money toward your down payment.
  • Perform seasonal work. Types of seasonal employment includes mowing lawns, shoveling snow and preparing and taxes. If you prepare taxes make sure that you are licensed. You could also work with large, established tax firms.

Find out how much it cost to pay rent for a studio or one bedroom apartment where you live. Put this money into your savings account. Also, give some of the money to your parents as a show of appreciation.

After you save 15 percent of the down payment, meet with lenders. Ask them what type of interest rates they are willing to give you on a new house. Stick to your savings plan until you reach at least 20 percent on the average price of a home in your area.




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