By: RAVI HARI, Senior Writer
Buyers have to pay around 20% of the purchase price. A 20% down payment is a sign that you have committed to the lender on a loan that you would take advantage of.
The down payment is deducted from the total purchase price of your home. Your loan will cover the remainder of the price of the house.
To increase your income so that you can save money for a down payment for a home loan, you have to make some sacrifices. The process is time consuming and can be stressful at times, but if the effort is made to buy a dream home for yourself, the sacrifices are well worth it.
Here are some helpful tips on how to save your money for a down payment:
- Minimize your debt
- Only spend money on things you need
- Don’t spend money on non-essential things
- Don’t indulge in impulse buying
- No more follies since at the end of the month you need to improve your savings
- If by credit card you pay more for your essentials, reduce them and resort to paying in cash. (because failure to pay by card will attract interest)
- Consider using public transportation if you need to get to work. (You can save money on gasoline, parking, tolls, if you avoid going to work by bike or car. Avoiding this particular mode of transportation is one of the best options for saving money. silver)
- Buy a cheaper version of the products and avoid buying branded items
- Rent part of your house or garage if you have enough space for yourself. It’s extra income you can earn
- Sell the goods and items you no longer use
- Buy from stores that offer discounts. Buy products at preferential rates
- Only buy things that have a value to remember
- Move to a location with lower rents
- Involve everyone in your household in the savings process as deposits would increase rapidly
- Don’t accumulate debt. Say goodbye to interest payments
- Keep an eye on the entertainment costs. Eating out and going to the movies for a movie involve enormous expense.