The days of waltzing into a bank and expecting a near-100% mortgage financing with minimal down payment are virtually non-existent. These days, lenders want to see some type of evidence of legitimate savings to put towards a home. If you want to own a piece of property to call home, you’ll need to start saving your dollars. Here are 4 ideas to help you do just that.
1 – Save 10% of Each Pay Check – This might not necessarily be a new concept, but taking a pinch off of every pay check and putting it into a savings account can be a harmless way of slowly adding much-needed funds for a down payment on a home. Designate one savings account specifically for your future home, then transfer 10% of your pay every period into this account before you use it for anything else.
2 – Cut Back on Luxuries – This might not sound like fun, but you’ll have to tighten the strings on spending a little in order to save up for your next home’s deposit. Begin by downgrading some of the luxuries you’ve gotten into a habit of dabbling into, such as eating our for lunch or going to the movies on a regular basis. The savings can really mount up after a few months.
3 – Downsize – If you’re currently renting an apartment or condo with hefty rental fees, downsizing to a smaller place in a more affordable area can help you get one step closer to saving up to get your own place with your name on title. Downsizing can also translate to saving money on utility and other household bills to put even more money into your savings account.
4 – Raise Funds on Ebay – Everyone needs to purge every once in a while. Rather that give your stuff away from free, why not sell it on sites like ebay to raise a few bucks? This is the ideal virtual place to get rid of unused household items in return for much-needed cash. From old CD racks to window curtains, ebay can help you generate hundreds of dollars in no time.