Door | Real Estate Brokerage Dallas

How to Save for a Down Payment

June 08, 2016

Have you put off buying a home because you don't think you can afford the down payment? You are not alone. Saving for a down payment has caused many of us anxiety and sleepless nights. Here at Door, we've got a few tips to help you save up the money you need.

Lower Your Rent: You can try to negotiate a lower rent from your landlord. If you are a good tenant, this may work. If it doesn't, consider downsizing to a cheaper and smaller apartment. Place the difference into a savings account specifically designated for your down payment.

Reduce Monthly Costs: When was the last time you shopped around for the best price on car insurance, cell phone service, or an Internet provider? You may save hundreds (and sometimes thousands) making a change or reducing services.

Have a Garage Sale: Don't laugh! You may become pleasantly surprised with the amount of money you raise. Try eBay or Craigslist for electronics or other higher valued items.

Get a Different Car: You can save a lot with a less expensive car, not only with the monthly payment but with fuel costs and possibly your insurance premium as well. A less expensive, fuel-efficient automobile can save hundreds every month over expensive gas guzzlers.

Find a Part-Time Job: Generating extra income from a second job takes work, but a few hours a week can provide you with a big boost.

Make Your Money Work: Investing the money you save can earn you more than today's low-interest rates on savings accounts. You may have some risk aversion to stocks, but financial institutions have products with little to no risk including certificates of deposit, money market accounts, and mutual funds.

If you would like to talk more about how to save for a home mortgage, or need more information, please contact a Door agent today!