5 Fastest Ways to Save for a Down Payment for First-Time Buyers
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Whether you have excellent credit or you need a poor credit mortgage, you will need to pay a down payment in order to qualify for the loan. This down payment may range from a few thousand to tens of thousands of dollars, and while saving it might seem impossible at first, there are some ways to make it simpler.
#1 – Open a Savings Account
A savings account does more than give you a place to put your money. It looks amazing on your application for a private home loan in Hamilton, and it allows you to collect interest on your money. Shop around for the bank that gives you the most security along with the highest rate of interest. You could collect up to 5% depending on the amount you have in the bank.
#2 – Reduce Your Daily Expenses
If you are like many people, you pay every month for things like cable television and cellphone service. Look at these providers and see what you can cut out to lower your bills, and then put that money in your savings account. Do you really watch that premium movie channel that costs you $20 extra per month? If not, cancel it and put those funds in the bank. Are you using all four gigs of data on your cellphone plan? In fact, you can even drop the thermostat a few degrees and save money on energy bills, too.
#3 – Have a Yard Sale
You might be surprised at how much a simple yard sale can bring in. While you certainly will not collect your entire down payment in a single weekend, you might earn yourself a nice chunk of change. Go through your clothes, your kitchenware, your gadgets, and even your garage. You can put anything you no longer use up for sale to add to your savings account.
#4 – Refinance Existing Debts
If you have a credit card with high interest, or if you are paying on a high-interest auto loan, you might be able to refinance those debts and save yourself a couple hundred dollars per month. Shop around for low-interest lenders who can refinance those debts for you. Many companies offer an introductory 0% interest rate on balance transfers, but do not let that fool you. Check the rate after the introductory period to make sure it fits your needs.
#5 – Save Your Change
This might seem a little silly at first, but it works. Every time you spend cash on something, save the change and put it in a jar at home. Then, when the jar gets full, take it to the bank and add it to your savings account. This is simple in theory, but it really adds up - especially if you spend cash to buy your lunch or a coffee in the morning. You will not miss that money immediately, but you will be glad you have it when it comes time to make your down payment on your poor credit mortgage.
When you can incorporate one or more of these strategies into your savings plan, not only are you helping to secure your private home loan, but you are also practicing strategies you can use for life. These savings tips can help you prepare for emergencies, education, and even retirement.
Visit this page to find out more about private home loan options in Hamilton.