Down Payments: 9 Smart Ways to Save
Linea | Las Vegas | Pardee Homes
Saving for a down payment on a home requires patience and self-discipline. While putting money away with every paycheck is one way to reach your goal, a little imagination can add even more funds towards your dream home. Here are nine creative ways to save more money for your down payment.
1. Shop Around
When was the last time you got an auto insurance quote? Changed phone services? Requested a lower interest rate for your credit cards? Little changes could make a big impact over time, especially if your credit score has improved recently.
2. Cut the Cord
Use a cord-cutting calculator to estimate how much you could save a year if you eliminated cable and just paid for Internet and services like Hulu, Netflix and Sling. If you can live without cable or Internet, expect to save at least $1,000 a year, but possibly more.
3. Re-evaluate Your Other Annual Expenses
Think about who else you are already paying throughout the year, but instead are being charged by the month. Services like Spotify will charge you less if you pay the full year in advance. When you combine all the different things you already put money towards, such as your gym membership and other expenses, your savings can add up. Reviewing your bank statements can also help you identify subscriptions you’re ready to cancel.
4. Pay Down High-Interest Debt
If you have any outstanding loans, put additional money towards paying off high-interest debt faster so you can be on your way to saving for a down payment. Qoins rounds up your purchases so you can pay off loans faster. Check with your bank also to see if they have a similar offering so you can round up payments with any remainders going into a savings account.
5. Skip A Resort Vacation
Instead of spending four to five figures on airfare and accommodations for your next vacation, enjoy a week off checking out places within driving distance of your home. If you still prefer to get away, ask an out-of-town friend to let you stay over when you visit or look for last-minute deals on sites like HotelTonight.
6. Set Aside Unexpected Savings
For bonuses and tax returns where you might not necessarily be able to anticipate how much money you’ll get, instead of splurging, put the money towards your down payment.
7. Start an Online Store
Whether you’re crafty or have a lot of collectibles to sell, there’s an online platform for you. Sites like Etsy are simple to maintain and require very little effort to market your wares. If you want to go all in, Shopify and BigCommerce allow customers to build their own e-commerce websites.
8. Crowdfund Your Down Payment
Many newlyweds are opting for financial gifts in lieu of a wedding registry. Niche sites like HomeFunded are catering to this relatively new phenomenon, allowing friends and family to pitch in what they can to help with the homebuying process
9. Down Payment Assistance
Whether you’re a first-time homeowner, active service member or veteran, check for local resources to help you with your down payment. For many people, this may be through your state’s Housing Finance Agency (HFA) and U.S. Department of Housing and Urban Development (HUD) grants.
Explore financing options for a new Pardee home through TRI Pointe Connect®. To learn more about TRI Pointe Connect or for any general questions about the homebuying process, contact our New Home Specialists.