- 95% of first-time homebuyers are willing to sacrifice to make homeownership a reality.
- The top item that buyers sacrifice is new clothes, at 54%.
- Even repeat or experienced buyers say they sacrificed taking a vacation or buying a new car to buy their last home.
Top tips to save for a down payment
Being a renter does have some advantages. No paying off the mortgage, no property taxes, and the landlord takes care of any maintenance and repair costs. However, renting your home does have one major drawback: You are spending money on rent without gaining any equity of the property.
Many renters want to own their home, but struggle to find the cash needed to make a down payment on a property.
In fact, a recent survey conducted by the website gobankingrates.com showed that a fifth of adults in the U.S. don’t use a savings account, while a third of those that do have zero funds in their account. Steps To Buying A Home
Below you will find some top tips to help you start saving and put aside enough funds to put a down payment on a home.
Set a target
Knowing how much you can afford to spend on a property is crucial to help you identify how much you will need to save for a down payment. Steps To Buying A Home
After working out how much you need to save, you should compile a detailed saving plan to reach your target. Having a target goal to reach will help you buckle down and start to put money away. You will find it hard to save if you try and set aside an unknown amount of cash for a down payment. Steps To Buying A Home
Work out your spending habits
Go through your credit card and bank statements for the last few months to find out where your money is spent. You can then focus on the areas of spending you can cut back on. Read More…
How Fast Can You Save for a Down Payment?
Saving for a down payment is often the biggest hurdle for a first-time homebuyer. Depending on where you live, median income, median rents, and home prices all vary. So, we set out to find out how long would it take you to save for a down payment in each state? Steps To Buying A Home
Using data from the United States Census Bureau and Zillow, we determined how long it would take, nationwide, for a first-time buyer to save enough money for a down payment on their dream home. There is a long-standing ‘rule’ that a household should not pay more than 28% of their income on their monthly housing expense. Steps To Buying A Home
By determining the percentage of income spent renting a 2-bedroom apartment in each state, and the amount needed for a 10% down payment, we were able to establish how long (in years) it would take for an average resident to save enough money to buy a home of their own. Steps To Buying A Home
According to the data, residents in Iowa can save for a down payment the quickest in just under 2 years (1.99). Below is a map created using the data for each state: Steps To Buying A Home