It can be intimidating to try to figure out how to save money for a house. Prices and interest rates can be steep, not to mention buying a house is the biggest financial decision one can make. There are many expenses that can come with buying a house: furniture, moving expenses, repairs, home insurance.
If you have your eyes set on buying a house sometime soon, let us at TFC Title Loans help you out with strategies for how to go about saving up for a substantial down payment.
We aren’t financial planning advisers but we do have 25 years’ experience in the lending industry and have picked up a fair amount of knowledge on financial matters. We want to share that knowledge with our customers so we can help them reach a more prosperous financial future.
We have been working hard as of late to expand our website with resource pages on wide ranging topics that answer a myriad of questions. Ever since 1994, we have been passionate about consumer education and lender transparency because they are central to our customers’ success as well as our own. This resource page will aim to give you practical ways in which you can save up a down payment for a house. The larger the down payment is, the smaller your mortgage will be. We hope these strategies can get you to a higher down payment than you could have previously imagined.
If you came across this page because you wish to obtain a title loan through TFC Title Loans, then go straight to our homepage and fill out our quick and easy online application right away! You might want o think about an emergency fund.
Strategies for Saving A Down Payment
Make sure to create a monthly budget that you can follow closely. You can only afford to build up a substantial savings if you spend less money than you make. Therefore, sticking with a fixed plan is very important. Consider using electronic bill pay to keep track of your expenses or print out a list of all your monthly expenses and check them off one by one to ensure they are paid. Doing this will also prevent you from spending more.
Open a separate savings account and keep your house fund there. Sometimes when people see more money in their account than usual they will be tempted to spend it or will believe they are further along in saving then they are and go lax. If you separate your money out, then this will be less likely to happen. Pick an account that might be harder to access and disallow yourself from withdrawing from that account.
Make saving as automatic as possible. Go to your work’s payroll department and have them send a fixed amount to your new savings account every payday through direct deposit. This is why you are paying yourself first so there will be no excuses for not saving.
If you receive any holiday or end of year bonuses or if you receive a large tax refund, it may be incredibly tempting to splurge a little bit on extras but don’t. Restrain yourself just for now so you can get that house. Since you have a well thought-out budget you don’t need that money to get by so it will go to the best use in your savings account.
Try to save money in big chunks rather than just small ones. Sure, it can be good to cut down on small, daily expenses but you will gain the most from cutting down on larger expenses like a big holiday vacation or a brand-new car.
If you don’t have kids, consider moving from a two-bedroom to a one-bedroom apartment before buying your new home. You can save 20-30% on rent and put all that extra cash into your savings fund. Living small for a while would be worth it if you paid a large down payment.
Spending less can be the go-to thought for most people when they imagine saving. But it definitely doesn’t hurt to work more to make more money as well. Take up your boss on those offers for overtime or additional work. If those aren’t available, then consider getting a temporary second job just until you save up enough.
For the time-being, save a little less for your retirement fund. If you have a matching contribution plan, then continue to contribute what can be matched but put any extra on hold right now so you can contribute more to your house fund. Don’t forget that buying a home is an investment as well since it is an asset. You are still saving for your retirement but in a different way.
Ask for your friends and family members to be supportive of your saving. They can make things easier for you by planning less expensive get together. It’s definitely more difficult to save when you have friends who are asking you to go shopping with them all the time.
Don’t be too hard on yourself during the process. You need to treat yourself occasionally otherwise you will go crazy and end up in a spending frenzy. If you stop eating out, cook a really fancy dinner with more expensive ingredients once in awhile instead. If you don’t go to the movies anymore then subscribe to Netflix, Hulu, or Amazon Prime instead. Saving long-term is always much easier to accomplish if you are not being overly-strict.
If you are left with any unanswered questions, then give us a call right away. We would be happy to answer them! And if you are interested in taking out a title loan with TFC Title Loans then fill out our online application on our homepage today! We look forward to working with you.
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Trading Financial Credit, LLC may act as the broker for the loan and may not be the direct lender. Loan proceeds are intended primarily for personal, family and household purposes. Trading Financial Credit, LLC does not offer or service student loans. California loans are made or arranged pursuant to a California Financing Law License : 603-8192. Arizona: Loans made pursuant to Arizona Department of Financial Institutions.
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