Saving for Your Down Payment

You have decided that you want to buy a home.  Whether it is your first home or you are looking to upsize to accommodate your growing family, buying a new home means saving for a new down payment. 

Down payments today are typically between 10% and 30% of the total sales price of the home.  This means that, in order to plan for your down payment, you need to know the approximate price range you plan to purchase in and then make plans to save for the largest down payment that you can afford.

There are many ways to begin a down payment savings.  Here are some tips to help you start saving for that new home.

Budget – The first thing you will want to do is ensure you are on a budget and then find room for cost-cutting.  Having a budget allows you to see where all your money goes and where you can save money.  For instance, if you have a large amount of your budget going to discretionary areas like entertainment and eating out, you may be able to find some extra room each month to move some money to savings for that down payment

Savings Account – A good way to save and not worry about spending the money you are saving for the house on something else is to open a separate saving account for the down payment.  This will help you keep it separate and not think its ok to spend it if something comes up.  Putting just a little each month in the account will help you track it and build the savings up quickly and safely.

Extra Income – If you are serious about saving for your new home, a good way is to increase your income.  Even the slightest increase in income can mean a lot toward a down payment.  Consider odd jobs or part time jobs that can give you a little extra each week that can be put directly into your down payment savings account.

There are many ways to cut expenses and save money as you take on the heavy task of saving for a new down payment.  Be creative and be determined and you may find your down payment savings growing more quickly than you expected.

Here are a few active homes to view in Ada County under $150K that are 10 years old or newer furnished by IDX/IMLS.  These listings below are updated daily early each morning.