4 Strategies to Save For a Down Payment this Year

Published on 3/17/2022

4 Strategies to Save For a Down Payment this Year

If you’re hoping to buy a house this year, you’ve probably already started thinking about how to save for the down payment. This can be one of the most daunting aspects of buying a home. And whether you need the full 20% for a down payment or qualify for a lower percentage rate, it can still feel like a lot. But we’ve compiled a list with 4 strategies to help you save that chunk of change. Try one or all of these this year to help you save!  

1. Maximize your income

So of course, one way to increase your savings quickly is to increase your income while keeping your cost of living the same. This might not be possible for everyone, but it is an important consideration. Could you negotiate for a raise at work? Or is there a side hustle that interests you that you would have time for over the next few months? Consider if there is a friend or family member you could live with for a few months to save on rent. Even if you contribute towards rent and utilities, any way you can cut down those bills for a while will mean greater savings for you!

2. Cut back on spending

After deciding if there are any ways to maximize your income, next consider where you can cut back in your spending. Are there streaming services you could cancel for a few months? What about limiting the amount you spend going out for dinners or coffee for a few months as well? Could you carpool to and from work or take the bus to save a little on gas? Was there a big vacation on your radar for this year? Could you push that a year to use the money towards your down payment? Any little amount helps and adds up over time. 

3. Reassess your debt situation

High interest debt eats away at your ability to save. But it can also negatively impact your credit score. Reduce your high interest debt or pay it off completely. This will boost your credit score and help you secure the best mortgage rate possible. And you’ll be able to put all the cash you were dishing out in debt payments into your savings account for your down payment instead! 

4. Research what kind of loan program is available to you

Do some digging to see what kind of loan you may qualify for. Especially if you are a first-time homebuyer. There might be programs or incentives available to that would drastically reduce the percentage of a down payment you would be required to make. It’s worth it to see what you qualify for, so you have a better idea how much you need to save. 

Implement as many of these strategies as possible to help save up a good amount of money for your down payment this year. And as always, give us a call to help with your storage needs while you are in the process of buying and moving into your new home!