5 tips for saving for your down payment

When it comes time to buying your first house, you have to first determine what you can realistically save for the down payment.

A model house, piggy bank, and twenty dollars all together

Typically to qualify for loans, you must put down somewhere between 5 and 20 percent of the overall cost of the house. Here are a five tips on how to help you save:

  1. Reduce large expenses
    Zillow explains that reducing things like rent and larger portions of your income will result in the greatest amount of savings. Try and negotiate your current rent with your landlord. If that doesn't work, consider downsizing and pocket the difference [1].
  2. Save your bonuses
    If you come across a bonus at work or received a nice sum of cash on your tax refund, save it. You weren't planning on that money anyway, so why not put it away in savings. The nice little surprise will look even better added to your home buying fund.
  3. Turn saving into a healthy competition
    Forbes advises that couples should try to have a little healthy competition to encourage growth [2]. See who can save more and you'll be in your new house in no time.
  4. Part-time
    If you are finding a hard time saving any extra cash, U.S. News suggests to consider getting a part-time job. Though it would take away from some of your off-time, you could potentially be pocketing all of the money from your second job and speeding up the process [3]. When you have the extra funds, be sure you stick with your initial plan.
  5. Lean on your support system
    Don't be embarrassed to talk to your family or friends if you need help; they are much cheaper to pay back and typically don't charge an interest rate.

[1] 5 Ways to (Really) Save for a Down Payment, Zillow
[2] 5 Creative Ways To Save For A Down Payment, Forbes
[3] 10 Easy Ways to Save for a Down Payment, U.S. News

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