Saving for a Home
Down Payment
For most mortgages, buyers can expect to need 20% of the purchase price to put down on a new home. While that may be a considerable chunk of change, there are some steps you can take to accelerate your savings. First, start by automating savings with every paycheck. Determine what amount you can afford to put directly into your savings account. Additionally, any work bonus, tax refund or other sum of money should go right into your savings for your new home.
Tackle Debt
We all know debt is a financial burden, but it can be especially tricky when it comes to purchasing a home. Having a lot of debt can make it extremely difficult to save for a house since most of your income goes to repayment. Depending on the type and how much debt you have, it can also play a factor in securing a mortgage. If you have high-interest credit card debt, pay off as much as you can or consider doing a balance transfer so you can focus on your savings going forward.
